ANSWER: As long as it is processed as a promissory note and not an equity investment neither UBIT nor UDFI will be triggered as a result of the self-directed IRA promissory note to the LLC.
MORE QUESTIONS: Obviously I want to keep transaction costs to a minimum. Which of these fees are tax dedictible? Wouldn't the custodial fees be dedcutible if separately billed? Is that an option? I woudl prefer to pay all fees (except the 9.99 it will cost to liquidate the position in the IRA) with non-plan funds if possible. The formation costs themselves are decutible, correct?
ANSWER: No none of the fees are tax deductible.