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Hi from Just Answer. I'mCustomer and saw your question.
The issues with SDIRAs (self directed IRAs) and the UBTI/UDFI income are much more complicated than most people expect them to be. More so, in fact, than I can explain in general terms. You want specific advice about not only the investment but how to dispose of it or otherwise avoid the large tax bite you expect when the LLC assets are sold with negative basis.
I can assist, but suggest that you might want personal advice, with a review of your documents, to review what you have done in tax reporting and what to do when the bad tax issues hit.
I will post an Offer for 1 hour professional time, which will include a review of your documents, research time, and a brief report or discussion of alternatives. Please advise.
sorry, but the ownership of the investment (LLC) complicates things, your basis in the interest, negative basis in the LLC interest, makeup of the investment (debt financed LLC interests create UDFI, for example), suggests that a general discussion would be long, cover material you don't need, and take much more effort to sort out what would be applicable to your specific situation.
No question a local tax pro would offer specific advice. I just don't believe general discourse on the subject does much good when you really want specifics.
I will return your question to the queue.