$******$

Scenario $7$: Self$-$Directed IRA Shenanigans

A taxpayer with a $$50,000$ NOL carryforward has a self$-$directed IRA that invests in:

A stake in a private startup company

Limited partnership interests in a real estate venture

Precious metals held in a physical vault

Cryptocurrency $($of course!$)$

Other Income:

Wages: $$100,000$

Qualified Dividends: $$2,000$

Itemized Deductions: $$24,000$

Allowable deduction for self$-$employment tax: None

Questions:

Are any of these IRA investments likely to create Prohibited Transaction issues?

Could the investments generate Unrelated Business Taxable Income $($UBTI$)?$

How would the NOL carryforward interact with any UBTI $($if applicable$)?$