If you’ve been following my blog, you know that I take great interest in understanding money. Why every single human who uses money on a regular basis doesn’t also share this interest is beyond me.
With trillions of dollars created by actions of Congress, the Federal Reserve, and the Treasury Department, the concern for coming inflation can only spread. This video explains why tax deferred investment vehicles are the best tool for battling inflation and can possibly even [Read more…]
I ran across this video recently. There are a lot of videos about the Federal Reserve, but this one is rather interesting because it contains a interview footage with their Corporate Communicaitons Officer. This isn’t some conspiracy theorist’s take on the Fed, it’s the Fed’s take on itself. You’ll probably be surprised from some of the information.
A question I get all the time is “Can I personally mow the lawn, maintain, and/or repair properties owned by my IRA LLC?” My answer is “No” which usually creates the response “But another company said I could.”
First, let’s summarize that the accountholder/participant of a retirement plan generally can’t have a transaction between themselves and their retirement plan. This includes the furnishing of services, sale of property, lending of money, and extension of credit between a plan and disqualified person (such as the accountholder). Next, let’s establish that active landlording means mowing the lawn, repairing, and fixing up properties, while passive landlording means collecting rent, paying mortgages/taxes/insurance, and contracting out the more active tasks to non-disqualified-persons. So is active landlording allowed? No, and I’ll provide two answers – the technical and the layman’s.
The Technical Answer
The argument for why active landlording for your IRA LLC’s property is not a prohibited transaction goes something like this…
As a general rule, the Internal Revenue Code provides [Read more…]
The information contained throughout this web site is not a substitute for professional advice you would receive from an accountant, attorney, or qualified tax preparer. The information provided does not constitute legal or professional advice nor is it conveyed or intended to be conveyed in the course of any adviser-client discourse, but is intended to be general information with respect to common business issues. If you enter your email address on our web site, you are also requesting and agreeing to subscribe to our free email newsletter, and you can unsubscribe anytime if you don't love it. References to investment performance of any kind is for illustration purposes only. Nothing in the information provided is an offer to transact securities or a promise of results, or tax, legal, or investment advice. Investing involves risk and there's no way to change that, so we invite you to make smart decisions managing that risk.