Articles
IRA Owner Wins Appeal of Prohibited Transaction Ruling: What Can Self Directed IRA Investors Learn?
In Daley v. Mostoller, the U.S. Court of Appeals for the Sixth Circuit ruled that an IRA client account agreement which contains a “cross collateralization” or lien against the personal debts of the IRA owner does not constitute a prohibited transaction unless there...
Self-Directed IRA Prohibited Transaction Costs Taxpayers Over $250K
The latest IRA prohibited transaction case is called Peek & Fleck v. Commissioner, U.S. Tax Court 140 T.C. No. 12 (March 8, 2013) and concerns two tax payers who used self directed IRAs to establish and fund a newly formed corporation which corporation purchased a...
Do I Need Foreign Corporation Registration?
Many business owners and investors doing business in multiple states often ask the question of whether their company, that is set up in one state needs to be registered into the other state(s) where they are doing business. This registration from your state of...
Performing Due Diligence Before You Invest & The Due Diligence Top 10 List
Before you invest your hard earned savings or your self directed IRA into a “non-traditional” business or real estate investment of another you need to ask some hard questions to the person or business receiving your money. Here are some tips to keep you out of legal...
Obama Budget Includes Wish to Limit Retirement Account Size to $3 Million
Many clients have e-mailed me about President Obama's new budget proposal which seeks to limit the collective size of an individuals retirement accounts (including IRAs and 401(k)s) to $3 Million dollars. This measure does not contain specifics but does indicate that...
What Can My Self Directed Retirement Account Invest Into and The Prohibited Transaction Rule Basics
A self-directed retirement account, in short, is a retirement account administered by a custodian who allows your retirement account to invest into any investment allowed by law. The law applicable to retirement accounts allows retirement accounts (such as IRAs or...
The Not So Well Known Benefits of Roth IRAs
Many investors and financial professionals are familiar with the primary benefits of a Roth IRA: that after you pay taxes on the money going into the Roth IRA that the plans investments grow tax free and come out tax free. That being said, there are so many more...
Utilizing Multiple LLCs & A New Series LLC State
Last year Kansas became the ninth state to adopt a Series LLC statute and their law is now in full effect. A Series LLC allows a real estate investor with multiple properties to increase their asset protection by minimizing their liabilities between properties. But...
Navigating the 2013 Capital Gain Tax Maze
Before the new 2013 capital gains rates went into effect taxpayers had a relatively simple way of understanding their capital gains taxes as there was only two rates for long term capital gains: zero percent for low income earners and 15% for middle and upper income...
Raising Money Under the New Rule 506(c) Offering: Advertising Now Allowed
The JOBS Act of 2012 amended the rules for private placement offerings (aka “PPMs”) to allow people to advertise and solicit their offerings to prospective investors. Under prior law, a PPM could not be marketed or solicited to people whom the offeror did not have an...
