Articles
Contingency Clauses in Real Estate Purchase Contracts
Contingency clauses are some of the most important components of a real estate purchase contract, and can provide significant protections to buyers of real estate. A contingency clause typically states that a buyer's offer to buy property is contingent upon certain...
How to Document and Write Down a Failed IRA Investment
While every self directed IRA investor enters into investments with high hopes and expectations of large gains, sometimes an IRA has to declare a loss on its investments and sometimes those losses are total losses. However, how does an IRA document a loss on a private...
SELF DIRECTED IRA INVESTMENTS & CROWDFUNDING: WHAT EVERY INVESTOR SHOULD KNOW
Crowdfunding will soon become one of the most utilized methods of raising capital for small businesses, investment ventures, and start-ups. The concept of Crowdfunding is to loosen the restrictive securities laws so that new or existing companies can raise small sums...
TO DISSOLVE MY COMPANY OR NOT TO DISSOLVE
The end of the year is an excellent time to consider whether you should dissolve an unused business entity. Perhaps you have an LLC that once owned a rental property or an s-corporation that once operated a business. If there are no longer operations or assets in your...
2014 RETIREMENT PLAN & HSA CONTRIBUTION LIMITS
The IRS recently announced the 2014 retirement plan contributions limits. The only significant changes in contributions amounts were for SEP IRAs Defined Benefit Plans. SEP IRA annual maximum contributions increase in 2014 from $51,000 to $52,000. Defined Benefit...
Who is Prohibited to My Self-Directed IRA?
The prohibited transaction rules applicable to self directed IRAs prohibit not what your IRA can invest into but WHO your IRA may engage in a transaction with. For example, the prohibited transaction rules restrict my IRA from buying a rental property from my father....
IRAs and the UBIT/UDFI Tax Exception for REITs
An IRA may invest into a real estate investment trust. Real estate investment trusts ("REIT") are trusts whereby the company undertakes certain real estate activities (e.g. own or lend on real estate) and returns profits to its owners. An IRA may invest and be an...
New Case Answers Important Questions About IRA/LLCs
Can my IRA own substantially all of the ownership of an LLC? Can my IRA/LLC pay a salary to me for serving as the manager of the IRA/LLC? Last week the U.S. Tax Court issued an opinion in the case of Ellis v. Commissioner, T.C. Memo 2013-245 and answered both of these...
SEC FINALLY RELEASES NEW CROWDFUNDING REGULATIONS
The SEC finally issued their proposed regulations for Crowdfunding last week in a 538 page proposed set of regulations. These regulations are open for comment for 90 days and will then go into effect in their present or modified form shortly thereafter....
IRA/LLCs ARE ALIVE & WELL, DON’T BELIEVE THE FALSE RUMORS OTHERWISE
I've recently received numerous e-mails from clients regarding an article written on Sovereignman.com. In the article the author states that the IRS is no longer issuing Tax IDs to IRA/LLCs. The article references word of mouth information from an attorney although...
