1.888.502.3767 | CONTACT US
Self Directed IRAs
Investing IRA funds in real estate used to be quite complicated, time-consuming, and expensive. Deals had to be administered by IRA custodians every step of the way, complicating the process, and fees had to be paid to the custodian every time the IRA made a move. Although, much of this is still true with many traditionally IRAs, investors can avoid a lot of unnecessary and costly steps by using a self-directed IRA.
A self-directed IRA is simply an IRA in which the IRA owner is able to make investment decisions without having to get the custodian's approval. The favorite instrument for opening a self-directed IRA is the Limited Liability Company, which allows the IRA owner to have absolute checkbook control over his or her IRA. This means every time you have to pay an expense associated with an IRA asset, you can write the check yourself and avoid custodian fees.
Making Money with Real Estate
Self-Directed IRAs are great for avoiding taxes on gains, especially for flipping properties. It is recommended that you use the SDIRA for real estate transactions that generate immediate (or almost immediate) taxable income (such as flips or options) and generally not buy and hold deals, that already shelter other income via componentizing.
Selecting the right entity structure for your real estate deal can mean the difference between building and losing incredible wealth. It's vitally important to incorporate correctly to protect yourself, your assets and your wealth. I get a lot of questions about entity structuring, particularly on legal, tax and compliance issues. Your goal is to find one that meets all three criteria. One size does not fit all. Structures can be changed.
Here is a summary of Questions and Answers related to entity structuring.
QUESTION: I have seen that many investors have an LLC. What are the benefits to a landlord that only has one property? Should I create one?
This is the final part of our series on Entity Structuring Questions and Answers.
QUESTION: "A client came to me and asked why he did not get any stocks from an LLC. I told him that LLC does not issue stocks. He told me that he once went to an attorney to set up a LLC. He keeps insisting that the attorney told him he would have such and such amount of stocks in that LLC. Am I missing something?"
ANSWER: You are missing what is commonly called "Units of Membership","Units of Ownership", or "Membership Certificates". They look like shares of corporate stock and result in basically the same as shares of corporate stock. I have made them in the past for a client with my PC.
Page 10 of 18
Our Free Assessment allows you to find out just how much you could have saved over the years, and how much you could save in the future. Assessments can find missed deductions, potential audit triggers and identify compliance and asset protection risk.
For those about to file taxes, we offer a free consultation. Learn how you can legally reduce the amount you pay out, personally, or maximize the financial efficiency of your business as a whole. We also advise on business formation and business restructuring.
At the Wealth Building CPA we teach our students how to become savvy and wealthy investors without making costly mistakes. Our many articles, webinars and podcasts demonstrate how to use money and tax strategies to maximize profits and minimize losses. This aggressive approach will fast track you to financial success. We implement a lot of the teachings from renowned real estate and wealth building experts such as: Robert Kiyosaki, Robert Allen, Scott Scheel, Ron Legrand, Zig Ziglar, Carleton Sheets, David Lindahl, Robert Shemin, Dave Ramsey and many more.
5010 Sunnyside Avenue, Suite 210Beltsville, MD 20705Tel 888.502.3767Fax 866.466.3146
©2015 WBCPA | Site by HTMelle