SDIRA Disqualified Person

[Ron Read]

I'm looking to purchase a piece of single-tenant commercial real-estate in my SD-IRA. The single tenant is a business which myself and my wife own a silent 1/3 stake in. Our partners are unrelated third-parties whom control the other 2/3, and manage the business.

Is the business a disqualified person?

Follow-up:  If the answer is no, and at some point in the future an immediate member of my family ends up working for the business as a non-managing employee, does that change things?

[Dmitriy Fomichenko]

@Ron Read,

All transactions involving your IRA must be at "arm's length," - meaning no disqualified person is involved, directly or indirectly.

You have to ask yourself: is a disqualified person involved? The answer is YES (you and your wife are both disqualified). The transaction you described clearly violates IRS rule:

"Prohibited transactions generally include the following transactions: A disqualified person’s transfer of plan income or assets to, or use of them by or for his or her benefit"

You are clearly benefiting from an IRA b/c the business you partially own would be leasing space from the IRA. This would be a Prohibited Tranaction.