Im using my self directed ira to fund a home building business. The home building business is a LLC in Florida and Im in Illinois. This home building business is a 3 person LLC and Im 1/3 owner. From talking to attorneys, I’m told the funding of this business is fine.
As we build the homes and sell the homes, we each will take 1/3 of the of the profit of each home. I’m strictly funding the business with my directed ira and I’m not doing any work on these homes.
Will my 1//3 profit of each home sold be considered UBIT.