is interest unrelated business income
UBIT (Unrelated Business Income Tax) If your IRA owns an asset or interest that produces unrelated business taxable income (UBIT), your IRA may be subject to an unrelated business income tax (UBIT) pursuant to Section 511 of the Internal Revenue Code. UBIT applies if ALL of the following are true: Income is derived from trade or business activity (i.e., sale of goods and services).