There are certain situations in which a self directed IRA can generate taxable income in the form of UBTI
Understanding Unrelated Business Taxable Income (UBTI)
IRA Lending: Borrowing With Your IRA
IRA Lending can be an option for some Self Directed IRA investors looking at larger real estate purchases.
Understanding Prohibited Transactions and How to Avoid Them
A Prohibited Transaction can bring into question the tax-deferred status of your IRA, potentially resulting in the disqualification of your account and substantial tax consequences. Understanding the rules associated with self directed IRA investments can help avoid this.