Hello, I’m the US tax attorney. In our common law system the application of the law to a specific situation happens in court. The tax and penalties on a $600k prohibited transaction are between about $690k and $970k. Information exchange happens automatically between the Portuguese financial institutions and IRS on accounts owned by Americans, and foreign accounts as well as SDIRAs have heightened audit risk. Questions about self-dealing are routine with SDIRA audits. The IRS does not have to prove wrongdoing; the taxpayer has to prove there was no wrongdoing. When someone gets audited and decides to go into expensive litigation over nearly $1M in penalties, we will have a definitive answer on this specific fact pattern. Until then, the role of attorneys is to use our professional judgement about the risks and advise taxpayers when they are considering the investment strategy. The consensus among tax attorneys is that SDIRA investments for the account owner to get a GV is very risky from a prohibited transaction standpoint. Investors should be fully advised on the risks but then are free to take whatever investment risks they are comfortable with.