Learn key SDIRA compliance rules for 2026 to protect your IRA from prohibited transactions and IRS scrutiny.
Rental income inside an IRA is generally tax-deferred — but the moment your IRA borrows to buy a property, a portion of that income may become immediately taxable through UBIT. For 2026, the 37% bracket hits at just $16,000 of trust income. Here's how the calculation works, why non-recourse loans are the only permitted financing, and when the all-cash approach simply makes more sense.
Your self-directed IRA can act as a private lender — issuing mortgage notes, earning interest tax-deferred, and bypassing Wall Street entirely. Here's how the structure works, what loan types are permitted, why private lending generally avoids UBIT, and what due diligence falls on you before you fund a single note.