@Daniel DietzYour analysis is in the right direction, but not quite there.1) Determine the debt financing ratio - in this case .602) 60% of the gross income is then looked at by UDFI3) 60% of all deductible expenses are applied, so 60% of straight-line depreciation, 60% of the interest on the note, 60% of property taxes, etc.4) $1000 exemption applies5) The net amount after deductions and exemptions is then taxable to the IRA, and the trust tax table is used to determine the tax amount.Even if you have a negative UDFI liability, it can be worth filing the 990-T in case you can carry that loss forward to future years.We have a UDFI calculator on our website and if you PM me, I can send a link to you (BP does not want me posting that outside content on their forums).

Thanks Daniel! 

Hi Daniel,Think about the differences between those two things.

@Daniel Fernande, don't over-think this one. :)If you've got the time, do a conventional 'soft money' cash out refinance on one or both of the others.If you don't have that time, get hard money on one or both of the others & refinance the hard money after.

@Daniel Whitmore Since you haven't gotten a response I'll take a crack at it.

Daniel Von Pache I'm headed out to Pittsburgh the week after next.

I am Daniel Miller.

Thanks for the tip Daniel!

@Daniel HymanYes, I lived in the home from Oct 2007 thru April 2012.

Originally posted by @Daniel Johnson:Thanks @J Scott, I saw someone else mention that method in another discussion and I believe they mentioned getting the idea from you.