The basis in the first lot became your basis in the second lot adjusted by the extra $25K you paid for the second lot.Your basis in the second lot is $170K, If you now sell that lot and net $350K, you will have a taxable gain of $180K -- not a loss at all.

I don't think a Roth incurs UBIT.UBIT (Unrelated Business Taxable Income) applies even in a ROTH IRA.

The reason a for profit business held in an IRA would be taxable is to level the playing field as stated before.

Maybe I should just bite the bullet and pay the tax.An installment sale may be a viable option for a taxable event that keeps your income below the AMT threshhold.Originally posted by Cheryl C.

I then take a Pitcher full of water and the pitcher is labeled "taxable income."

Your SDIRA now profited $30k (and lets assume it took you 4 months) of which is taxable via UBIT.

This rollover can be for any amount in the plan and there will be no taxable events.

You can trade down in value, but the amount that you  trade down by would be taxable. 

You'll then be paying the CC company $1,000 per year, an added (and unneccessary) expense.Then when you go to figure your income tax (probably about 17% of TAXABLE INCOME) you'll save $170.

I am just curious.Depreciation would be the same (assuming the same basis), but if the rents are less on the 100k than the total of the 25k homes, there would be less taxable income.