SD-IRA and UBIT questions

[Kent Chrisman]

I'm looking into setting up a SD-IRA with an old employer retirement account in order to get into a syndication but I have 2 questions:

- I'm assuming that I will be subject to UBIT due to the operator/syndication getting financing in order to acquire the property. After all depreciation and operating expenses are subtracted from my SD-IRAs share of the profits, will the tax liability be paid from the SD-IRA or my own pocket? I'd assume out of the IRA...

- Since SD-IRAs are tax deferred and assuming that for the life of the SD-IRA I am paying UBIT, will I also have to pay income taxes upon receiving distributions or dissolving the SD-IRA after the age of 59 1/2?

Thanks for your input