Lending My IRA Money

[Account Closed]

Talking with a syndication expert the other day, he seems to think if I lend my IRA money (using a custodian of course) to flippers that I'm somehow violating IRA rules, maybe doing business in the IRA. He suggests having a broker unrelated to me originate the loan, or that I invest as a passive investor through a syndication. Is this true?

[Dmitriy Fomichenko]

David, you can lend money out of your IRA to a flipper, that is totally passive activity, no violation of the IRS rules. Unless of course you are dealing with disqualified person.

Also running a business out of your IRA is not prohibited either (which is not the case in your situation), but that would expose your IRA income from such activity to UBIT tax.