Specific SDIRA Transaction

[Jake Kucheck]

I spend a lot of time reading the old threads but wanted to be absolutely sure before I went ahead with this:

Step 1: Otherwise illiquid father with good credit buys a property from an unrelated third party who is not a disqualified person, pays cash from but does not liquidate his SDIRA (leaving reserves to pay property taxes, etc).

Step 2: Otherwise illiquid father sells property to his liquid but credit repair needing son. This transaction utilizes a down payment (could this potentially be provided by the father?) and seller financing, creating a note not subject to UDFI or UBIT (I don't think).

What I haven't got a straight answer to is whether or not this type of financing provided to a disqualified person (I'm guessing a son is such a person) would cause a problem.

I'm sure there's a lot wrong with this and you will all tell me to talk to a CPA but I figured someone might have seen something similar before...