Demise of the Checkbook IRA, QRP, Solo 401k?

Is the Checkbook IRA Illegal? Must Know Tax Court Ruling: SDIRA, QRP, Solo 401k, Checkbook IRA, IRA-LLC, IRA-Trust, HSA, & ESA



  • Watch out for “promoters!”
  • Lots of Tax Turkey & Red Herring out there!
  • Neither the IRS, nor the Tax Court, appear to be attacking the Checkbook IRA structure.
  • The ruling – in its essence – has nothing to do with Checkbook IRAs, but:
    • Checkbook IRAs does make it easier for a self-directed investor to intentionally  or inadvertently run afoul of the Tax Court rules
  • Creates questions for all self-directed retirement accounts, including QRP, holding personal assets
  • Creates questions for all arrangements in which person touching assets “wears more than one hat.” This includes QRP & Solo 401k!
  • Implications for many SDIRA structures – that don’t involve an IRA-LLC or IRA-Trust – that flunk custody! (For example, certain crypto arrangements)
  • QRP (incl. Solo 401k) may have a leg-up on SDIRA (Very nuanced discussion)
  • Using a QRP-LLC may undermine whatever “leg-up” a QRP may have over an SDIRA!
  • Always create and maintain a clear trail of transactions!
  • At all times, the role in which you’re acting – you’re “capacity” – must be unequivocal & unambiguous.
  • Never, ever take physical possession!
  • Don’t ever touch cash!
  • Be extra cautious with fungible assets that have no clear evidence of “title” (e.g., gold, silver, bullion, precious metals)
  • Creates uncertainty for crypto assets, especially crypto assets moved to “cold storage.”
  • Created questions regarding all personal assets
  • The Tax Court left many of the IRS arguments unresolved, so steer clear of any of those!

Continue reading “Demise of the Checkbook IRA, QRP, Solo 401k?”

EQRP® & QRP: What Are EQRP®, QRP, Solo 401k & SDIRA?

eQRP® – a marketing term registered to Total Control Financial, LLC – QRP and Solo 401k generate excitement and interest within the self-directed investor community. From crypto-enthusiasts, gold & silver precious metals investors, and tax lien & deed buyers to real estate syndicators, QRP and Solo 401k, as an alternative to SDIRA, is creating incredible buzz. But, there appears to be extensive misunderstanding of QRP and Solo 401k, so we’re providing an educational resource for self-directed investors.

For analysis, review, and FAQ about  QRP, QRP-LLC, Solo QRP, Solo 401k, SDIRA, & Checkbook Control read on. Continue reading “EQRP® & QRP: What Are EQRP®, QRP, Solo 401k & SDIRA?”

Podcast: SDIRA Fundamentals & Advanced SDIRA Strategy

Webinar: Cryptocurrency Taxation – CPA Panel Discussion

Crypto tax topics addressed by the xCubicle-hosted CPA panel, in which ReSure was represented by Bernard Reisz CPA include:

  • Crypto-to-Crypto Capital Gains
  • Crypto-to-Fiat Taxation
  • Taxation of crypto-gifting
  • Taxation of crypto-mining
  • Crypto-tax for non-US citizens
  • Business entities for crypto-investing and trading – LLCs and C-corps
  • Tax treatment of inherited cryptocurrency
  • 1031 like-kind exchanges for crypto-to-crypto transactions: Utility Tokens vs Digital Currency (Bitcoin, Monero, Ethereum, Zcash, etc.)
  • Tax Basis Calculations: FIFO, LIFO, HIFO, Specific Identification, Average Cost
  • Taxation of ICOs – Initial Coin Offerings
  • Hard Forks, Air Drops
  • The Cryptocurrency Tax Fairness Act
  • Ordinary income vs. short-term gain vs. long-term gain
  • Tax-free retirement accounts (QRP, Solo 401KCheckbook IRA-LLC) for crypto investing
  • The IRS and Virtual Currency: Chainalysis, Coinbase John Doe Summons
  • FBAR (FinCEN 114), FATCA

Tax Podcast: Structuring Your Real Estate & Crypto Investments

In this episode of REAL ESTATE RADIO LIVE WITH JOE CUCCHIARA, we discuss different  types of real estate investments – buy-and-hold real estate, real estate wholesaling, real estate flipping, real estate private lending, real estate tax liens & deeds  – their respective tax treatment, and the importance of using the optimal tax entity to achieve the greatest tax savings for each. Cryptocurrency taxation and crypto tax strategy are also covered. Continue reading “Tax Podcast: Structuring Your Real Estate & Crypto Investments”

Crypto IRA and Crypto 401k Overview: Tax Free Bitcoin Interview

In this live radio broadcast, we discussed the fundamentals of Cryptocurrency taxation and tax-free Cryptocurrency retirement account investing. If you’d like to invest tax efficiently in Bitcoin (BTC), Initial Coin Offerings (ICOs), Bitcoin mining, and any other Blockchain venture, this podcast will give you the basics for doing so with Checkbook SDIRA and Solo 401K Plans.

The IRS published guidance regarding the tax treatment of virtual currencies in IRS Notice 2014-21. Cryptocurrency transactions, even when no “fiat” is received, are taxable events. For example, if a crypto investor trades Bitcoin for Ethereum, he may owe taxes on that trade – but the transaction will not have provided any US Dollars with which to pay the tax liability (the IRS does not yet accept crypto payment of taxes).

Crypto-mining has particularly unfavorable tax treatments as ordinary income. Self-directed retirement accounts, when properly structured, can be used to significantly improve the tax results of mining operations.

How To Buy Bitcoin Using a Self Directed IRA-LLC, QRP or Solo 401k