@Ashish Acharya That's interesting, I thought Sec 195 applied to all taxpayers, including disregarded entities.

This holding company fully owns daughter LLCs that are disregarded entities. 

Disregarding insurance, our strategy:1.

To me that says that these LLCs are single-member LLCs that are disregarded for federal tax purposes. 

You basically just CREATED $15k.Bear in mind this example disregards the cost of capital (i.e. hard money / short term loans).

On here you will find many "successful" SDIRA investors who have clearly violated the prohibited transaction rules, they just haven't been caught.Essentially if you are looking to invest with a retirement account and you want it to remain retirement money it can work, if you are looking to create non-retirement income or look to help finance yourself it generally will not work.I have probably talked to 50 people about this, 2 are doing it correctly, a couple have disregarded the rules and have done it anyhow, and most everyone else heard a pitch and wanted to make it work when it couldn't work for them...Maybe you can get a national person to do a webinar for you?

Then all of the activities of the trust and the LLC are reported on your personal tax return so the IRS disregards those entities anyway and sees you as the true taxpayer anyway. 

@Aaron Klatt you would have to disregard the entire description.

@Ryan Huddleston, if that LLC is a disregarded entity (it doesn't file a tax return and you are the only member) then you're really the tax payer anyway so moving it back and forth should be no problem. 

If not, disregard.