The term UBIT stands for ‘Unrelated Business Income Tax’. UBIT applies to debt-financed property that you purchase in your IRA and also applies to operating income received from companies owned by IRAs and qualified plans. If you purchase property with your IRA funds, and you finance some of the purchase through a loan, any income you receive is taxable under UBIT rules for the percentage of property that is debt-financed. The details can be found at www.irs.gov.