@Kay Cee , the investment would have to be distributed from the IRA in-kind to acquire a cost basis equal to the taxable amount. However, my understanding is that with a SDIRA the IRA owns an LLC which owns the investment. I'm not sure that the investment can be distributed in-kind from the IRA if it's not the IRA that owns the investment. I don't know if the LLC itself can be distributed in-kind.
