Attention Self-Directed Investors!
Must Know Tax Court Ruling: SDIRA, QRP, Solo 401k, Checkbook IRA, IRA-LLC, IRA-Trust, HSA, & ESA
Tax Court Opinion: ANDREW MCNULTY AND DONNA MCNULTY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
- 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 clearly provide greater opportunity for running afoul of the Tax Court rules
- There is some concern that the Checkbook IRA structure can be deemed to inherently run afoul of the Tax Court ruling
- 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?”
What you can do to stop this unreasonable attack on Self-Directed IRA
Use the following links to use our democratic process and make some noise!
Quick & Easy – Do this first, now!
Impactful, but Requires Some Effort – After doing the Quick & Easy, take a few moments to send a custom message to members of congress.
Continue reading “SDIRAs Under Attack: What To Know & What To Do”
Have you ever felt confused by self-directed retirement account jargon? Do you want to avoid hidden – but common – pitfalls and safely grow your assets through self-directed retirement accounts? This webinar will deliver clarity you need about the following topics: Continue reading “Webinar: Real Estate Retirement Accounts – The Great, The Good, The Bad, & The Ugly”
Self-directed QRP, Solo 401k, & SDIRA investors that use tax-sheltered retirement accounts to invest in real estate, private lending, crypto, tax liens, syndications and additional alternatives need to know about regulatory changes affecting their accounts. In this post, we’ll outline details of the SECURE Act impacting self-directed investors using QRPs, Solo 401(k), & SDIRA to invest off Wall Street. Continue reading “SECURE Act For QRP, Solo 401k, & SDIRA Investors”
Tax Free Real Estate Investing With Self-Directed Retirement Accounts: SDIRA, QRP & 401k
Did you know that you can use a Traditional IRA and Roth IRA to invest in real estate tax free? Do you know the difference between a Traditional IRA and Roth IRA? In this post you’ll get an overview of these accounts and how you can use a self-directed IRA with checkbook control for real estate investing. Continue reading “How To Invest In Real Estate With SDIRAs and Checkbook Control”
In this post, we focus on CARES Act implications & strategy for tax-favored self-directed retirement accounts
: Individual Retirement Arrangements (IRA)
, Qualified Retirement Plans (QRP)
, Self-Directed IRAs (SDIRA)
, Solo 401k
, Employer 401k plans
& many other QRPs.
The CARES Act, short for Coronavirus Aid, Relief, and Economic Security Act, is a massive $2,000,000,000,000+ tax and spending package signed by President Trump on March 27, 2020. The CARES Act includes many forms of financial relief for businesses and individuals. Continue reading “CARES Act for Self-Directed Financial Investors: QRP, SDIRA, & Solo 401k”
Both syndicators and passive real estate investors will benefit from education about the incredible opportunity presented by Self-Directed IRAs and 401k plans, as well as the IRS guidelines that govern them. For a syndicator-centric perspective of SDIRA and SD401k real estate investing
, listen to this episode of The Real Estate Syndication Show
, hosted by real estate investor and syndicator Whitney Sewell
of Life Bridge Capital
. Continue reading “Podcast: Checkbook IRA & 401k For Real Estate Syndicators”