When an IRA receives income from a trade or business on a regular or repeated basis, it can become subject to a tax known as UBIT which is meant to level the playing field and protect tax-paying businesses from unfair competition. 

not reallyAnother level of complexion is losses that are passive may not be utilized to offset your other income while some taxpayers can. sometimes it's best to keep things simple. 

I thought that Portland did not have any accountants or taxpayers.

If the LLC is a single member disregarded entity as @Bryan Zuetel said then you are not changing the tax payer when you contribute that property into that LLC. 

I work extensively in representation of taxpayers before the IRS.

@Dan TrinhThere is a cash-basis of accounting and an accrual-basis of accounting.If you are a cash-basis taxpayer - you would normally deduct the full insurance payment in the year that the payment is made so long as amount paid for the insurance policy ends within the next year.Example - you can be eligible to pay and expense for an insurance policy that lasted one year.However, you may not be eligible to deduct a portion paid for an insurance policy if the policy lasted several years.In your case - if you paid for the $400 insurance policy in 2017 - it was a deduction on your 2017 tax return.if you paid for the $500 insurance policy in 2018 - it is a deduction on your 2018 return.If you paid $900 in 2017 - then you have a slightly sticky situation.

Well the prison lobby will always find ways to make more $$ from taxpayer funds.

It is a grey area with many gotchas and a long history of litigation between taxpayers and the IRS.

Again, I have seen many errors in this step when taxpayers DIY it or have an attorney not familiar with tax law obtain the EIN. 

To clarify the upon "upon request" part of your reply:  you're saying that after I buy the deed to a property with an incorrect assessment (in my case, it's assessed as land only but has a home on it), the taxpayer could discover that their parcel was incorrectly assessed and then use that technicality to request that the state void the tax sale?