SDIRA AIRBNB UBIT TAX

[Tina McDonald]

I was considering using money from my self directed IRA to purchase a home to be used as an Airbnb. I was having a hard time getting some clarity around why I would be taxed for short term rentals vs Long-term. Oh sweet google! This blog post by The Entrust Group was precisely the explanation I was looking for, so I thought I would share the link for anyone that might be struggling with the same question.

https://www.google.com/amp/s/www.theentrustgroup.com/blog/are-the-airbnb-investment-properties-in-your-self-directed-ira-subject-to-tax%3fhs_amp=true

[John Underwood]

I think it is much easier to own long term rentals in a SDIRA than Vrbo's. I own both.

I like to use my Vrbo Lake house, I couldn't do that if my SDIRA owned it.

Vrbo's require much more effort than long term rentals. If you tern over the Vrbo to a PM they take on average 30% of your gross profits. Not a great business model, at least not nearly as good as self managing.