MyCPAPro — Investment Structure Modeler
MyCPAPro™ · © MyCPAPro LLC · All Rights Reserved · For professional use only · Not client-facing tax advice · §11, §401(a), §408, §469, §465, §514(c)(9), §4975, §1(h)
MyCPAPro — Investment Structure Modeler v7
Deal / Client name
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MyCPAPro — Internal Tax Reference

Multi-Vehicle Investment Modeler

LLC · SD-IRA · Solo 401k · ROBS  ·  Ownership-based allocation · Partner roles · Guarantee types · 5-year projections

Section 1 — Deal Size & Ownership Structure

Your numbers only reflect your ownership %. Enter the full deal size below, then set your ownership percentage. All vehicle allocations, income projections, and tax calculations will automatically scale to your share only. Partners' equity, obligations, and tax treatment are modeled separately and shown for context only.
Total Deal Economics
Full deal size (100% — equity + debt)
$2.5M
Total debt / loan on the deal Applies to full deal
$0
Your ownership % <20% = cleanest §4975 SD-IRA analysis
100%
Ownership split
You: 100%
Your actual cash contribution Override if your cash ≠ your ownership % of total equity
Your equity (cash to allocate)$2.5M
Full deal equity$2.5M
Your share of debt$0
Outside Partners
Adding partners changes the total equity available. Each partner's role (active/passive) affects how the deal is classified for §469 purposes and whether GP/operator fees create prohibited transaction risks for your SD-IRA.
Partner name% ownedRole
Why partner roles matter for your SD-IRA: If a partner is an active operator or GP and receives management fees, and your SD-IRA co-invests in the same entity, the IRS may view the value flowing from the operator's services as a benefit to the disqualified person (you) via attribution — a §4975 concern. Cleanest structure: SD-IRA invests in a separate passive tranche with no benefit from active participants you are related to.

Section 2 — Deal Type, Tax Rates & Projections

Deal Type & Exit
Asset type
Operating business
Restaurant, franchise, retail, service co. Business generates active operating income.
⚠ UBTI — SD-IRA pays trust rates on profits
Real property
Rental real estate, NNN, commercial, residential. Rental income is generally UBTI-exempt.
✓ No UBTI on rental income — SD-IRA friendly
Business + real property
Hotel, restaurant with owned building, mixed-use. Operating income triggers UBTI; real estate rental portion may be exempt.
⚠ Partial UBTI — allocate between active/passive income
Equity stake / fund
LP interest, PE fund, passive minority equity. UBTI depends on what the underlying entity does — pass-through of operating income still triggers UBTI.
⚠ UBTI depends on entity — verify underlying income type
Target entity tax classification Controls UBTI exposure for IRA/401k + §4975 eligibility
🏢 C-Corp (or LLC → C-Corp)
Dividends to IRA/401k = not UBTI. Stock sale = not UBTI. Best structure for all retirement account investments.
✓ UBTI eliminated for IRA / 401k
🚫 S-Corp
IRA/401k is an ineligible shareholder. The S-election terminates the moment the retirement account invests — entity becomes a C-corp by default.
✗ HARD BLOCK — IRA/401k cannot be S-corp shareholder
⚠ Partnership / LLC (pass-through)
Operating income allocated to IRA = UBTI at trust rates. Sale of partnership interest = likely UBTI. UDFI also applies if entity carries debt.
⚠ UBTI applies — trust rate drag on retirement vehicles
⚠ Disregarded entity (SMLLC)
Treated same as partnership for UBTI purposes. Operating income flows through to retirement account at trust rates.
⚠ Same UBTI treatment as partnership
Holding period
Exit type (affects ROBS double-tax analysis)
Tax Rates
Your ordinary income rate
Spouse ordinary income rate Used for spouse Traditional account distribution tax calculations
LTCG rate
NIIT (Net Investment Income Tax)
State Select state to auto-fill rate + distribution tax rules
% = 0.133 decimal
State taxes retirement distributions:
State rate applies to LLC tranche operating income. For Traditional IRA/401k distributions, only applies if state taxes retirement income (most do; TN, TX, FL, WA, WY, NV, SD, AK, NH exempt).
C-Corp rate (§11 — ROBS operating income only) IRA/401k dividends from C-Corp are not subject to corporate tax at the retirement account level
UBTI trust tax rate Taxed at trust/estate rates inside retirement account. 2024: income above ~$15,200 = 37%
Override with custom % for deals where UBTI falls in a lower trust bracket (smaller allocations or lower income years). Enter custom value to override the radio selection above.
10-Year Income Projections — Total Deal Income / Loss (model applies your ownership % automatically)
Enter the TOTAL deal income/loss — not your share. The model automatically applies your ownership % to calculate your share, then allocates to each vehicle. Years 1–5 are individually adjustable. Years 6–10 auto-fill from the growth rate below (override any year by moving its slider). Bonus depreciation basis and exit proceeds also use total deal numbers.
Auto-fill Years 2–10 with growth rate from Year 1
Manual
Bonus Depreciation
Bonus depreciation available?
Depreciable asset basis Total deal basis — model applies your ownership %
$0
Exit Proceeds
Total expected exit price (net of costs) Full deal exit — model applies your ownership %
$0
Other passive income (from other entities) K-1 income, rental, LP distributions

Section 3 — Control, Activity & Debt Guarantee

Two separate legal analyses run in parallel: (1) §469 active vs. passive — determines whether LLC losses are immediately deductible or must be carried forward. (2) §4975 prohibited transactions — determines whether your SD-IRA can invest at all. A personal guarantee on debt is the most common single factor that simultaneously damages both analyses.
Debt Guarantee Structure — Select the guarantee type for this deal
No guarantee — non-recourse
Debt is secured only by the asset/collateral. You have no personal obligation if the deal defaults. SBA or conventional non-recourse structure.
✓ SD-IRA fully eligible
LLC pledges its own assets as collateral
The LLC (not you personally) pledges its assets against the loan. Your personal assets are not at risk. You are not signing a personal guarantee.
⚠ SD-IRA eligible if structured correctly
Limited / carve-out personal guarantee
You personally guarantee specific obligations (e.g., fraud, environmental, bad acts carve-outs) but not the full loan balance. Common in commercial real estate.
✗ SD-IRA blocked — personal obligation exists
Full personal guarantee
You personally guarantee the entire loan. You are liable for the full debt if the entity defaults. Standard for SBA 7(a), many bank loans.
✗ SD-IRA blocked — §4975 prohibited transaction
Q1. Will you serve as officer, director, or day-to-day manager of the entity?
§4975 disqualified person test: an officer or director is disqualified regardless of ownership %. Blocks SD-IRA even at 5% ownership.
Q2. Hours per year you will work in / for the business
§469 material participation — 500+ hrs: Test 1 (active). 100–499 hrs: borderline. Under 100 hrs: passive presumed. 750+ hrs + majority of work time: Real Estate Professional status.
—
Q3. Independent third-party operator / management company in control?
Strong support for passive status: operator with full authority, documented in a management agreement, no performance tied to your direction.
Q4. Does your spouse own any equity in the target entity?
Your spouse is a permanent disqualified person under §4975(e)(2)(F). Spouse equity ≥50% = hard block. Any equity below 50% creates indirect benefit risk and must be analyzed.
⚠ Indirect benefit risk — even below 50%: Any entity in which your spouse holds equity may be viewed as benefiting your spouse if the IRA's returns flow to a jointly-held estate or otherwise benefit the household. Retain ERISA counsel opinion before closing if spouse holds any equity in the target.
Q5. After the retirement account invests, will any disqualified person have an ongoing relationship with this business?
Disqualified persons include: you, spouse, lineal ancestors/descendants, and entities they control ≥50%. Advisory, employment, management, or ownership roles all create §4975(c)(1)(C) risk.
Q7. Has any disqualified person owned equity in this entity within the past 24 months?
Prior ownership + IRA investment = step transaction risk. The IRS may collapse both transactions into a single prohibited transaction — potentially disqualifying the entire IRA.
What makes you ACTIVE vs. PASSIVE? §469 Tests
Under §469, you are active if you meet ANY one of these tests:
Test 1500+ hours worked in the activity during the year
Test 3100+ hours AND more than any other single participant
Test 5Material participation in 5 of the last 10 years
Test 6Personal service activity — material participation in any 3 prior years
Test 7Facts and circumstances — more than 100 hrs, no one participates more than you, activity treated as your principal trade
Personal guarantee + LLC investment: Pledging a personal guarantee on a loan your LLC took for a passive investment does NOT automatically make you active under §469. However, it does signal economic risk that the IRS may scrutinize when evaluating your passive status, and it blocks the SD-IRA regardless of your activity level — because §4975 is a separate test from §469.
SD-IRA + LLC Co-Invest Scenario
Configure a structure where your SD-IRA invests as a passive cash partner and your LLC invests actively (or with collateral pledge).
SD-IRA tranche structure
LLC tranche structure
→ Answer questions to see determination

Section 3.5 — Retirement Account Parameters

Capital adequacy check: Enter current balances to verify your vehicle allocations are fundable. The model will flag if your allocation exceeds available account funds and show how long annual contributions would take to fill the position.
🛡 SD-IRA Parameters
Current account balance
$
Account type
Already committed to other deals
Annual contribution limit: $7,000/yr ($8,000 if age 50+)
Available for this deal: $250,000
🏦 Solo 401k Parameters
Current account balance
$
Account type
Already committed to other deals
Annual contribution: $69,000/yr ($76,500 if age 50+)
Employee elective deferral: up to $23,000 · Employer profit sharing: up to 25% of net SE income
Participant loan available: $50,000
Available for this deal: $250,000
Spouse Retirement Account
Include spouse retirement account in this deal?

Section 4 — Investment Vehicle Allocation

All allocations are percentages of YOUR equity only (shown in the equity callout in Section 1). Allocations must total 100% of your equity. The model calculates tax impact on your ownership share only — partner economics are excluded.
Why only LLC, SD-IRA, Solo 401k, and ROBS: We never recommend investing in your own name without an LLC wrapper. An LLC provides liability separation, charging order protection, and entity-level accounting. Retirement capital is deployed through SD-IRA or Solo 401k (passive C-Corp investor — zero UBTI with correct entity structure). Active operators may additionally use ROBS for their 401k capital.

Recommended Allocation Auto-updates from Section 3 answers

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LLC (Pass-through)
—
—
SD-IRA
—
—
Solo 401k
—
—
ROBS (Active)
—
Update answers in Section 3 to generate recommendation.
🏢

LLC (Pass-through)

0%
$0 of your equityAlways eligible
Your active % ← → passive % split for this LLC tranche
0% active100% passive
Active portion: losses deductible immediately. Passive portion: losses suspended unless you have other passive income.
🛡

SD-IRA

0%
$0 of your equityChecking...
Always 100% passive (§4975 mandate)
SD-IRA investments are always passive. No management, no officer role, no personal guarantee. The IRA is a silent cash investor only.
Account balance (for conversion analysis)
🏦

Solo 401k — Passive C-Corp

0%
$0 of your equityChecking...
Always 100% passive (§4975 mandate)
Solo 401k invests passively only — §4975 prohibits active control. Target entity must be C-corp for zero UBTI on dividends and stock sale exit.
Solo 401k Key Parameters Annual contribution: $69,000/yr
Participant loan: up to $50k or 50% of vested balance — not a prohibited transaction when properly documented
W-2 requirement: None — passive investor role
Account balance (for conversion analysis)
🏗

ROBS — Active Operator C-Corp

W-2 employment required. Passive-only ROBS is an IRS audit trigger and disqualifies the plan. If you will not be an active W-2 employee, use Solo 401k instead.
0%
$0 of your equityChecking...
Always 100% active (W-2 required)
ROBS requires W-2 employment in the C-Corp. Passive-only ROBS is an IRS audit trigger and disqualifies the plan.
Your allocation — % of your equity ($0)
LLC: 0%
SD-IRA: 0%
Solo 401k: 0%
ROBS: 0%
0% allocated — set allocations above

⚠ UBTI Cost of Pass-Through Structure

Your retirement account allocation generates UBTI tax because the target entity is a pass-through. Converting to C-Corp taxation would eliminate this entirely.

Results — Your Share of Tax Impact

Tax Savings — Split vs. No Split

Loss & Offset Tracker

Tax Calculation Audit

10-Year Projection Tables

Head-to-Head Comparison

Final Recommendation

Run the model to see the final recommendation.

MyCPAPro — Investment Structure Modeler v7 · For professional use only · Not client-facing tax advice · §11, §401(a), §408, §469, §465, §514(c)(9), §4975, §1(h) · 4-vehicle: LLC, SD-IRA, Solo 401k (Passive C-Corp), ROBS (Active Operator) · 10-year projection · Deal Library + Portfolio