SDIRA LLC and Flipping Lease Options?

[Account Closed]

If I use a self-directed IRA LLC with checkbook control to fund the lease option consideration, can I then deposit the profit from flipping the lease option into the SDIRA tax free?

[Jon Holdman]

No, its not entirely tax free. Yes, you can (and must) deposit the proceeds back into the IRA's checking account. However, because flipping lease options is an active business, your IRA is now subject to UBIT (unrelated business income tax.)