Calculating UBIT as a passive syndication investor

[Tony Lin]

I'm exploring SD checkbook IRA thanks to the advice on this forum. Unfortunately I don't qualify for solo-401k since I have no self business generating 1099 income... I wanted to see how UBIT is calculated in a IRA LLC to see if I should be concerned about that if at all.

If I understand correctly, you're only taxed on the portion of the loan. Hypothetically speaking, if I passively invest 100k into a deal that has a 10 million loan and cash flows 10,000 a year (round numbers), then is the amount subject to UBIT calculated as: 

investment (100k) / loan (10 million) = 1% (percentage of loan owned)

1% * 10k (cashflow) = $100 income subject to UBIT

Did I calculate this right? And is depreciation factored in IRA accounts? Sounds like if it's just $100 then the tax impact is negligible. Just more things for the CPA to file.