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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Self Directed IRA and Flipping... Capital Gain??? Posted by Mark on November 12, 2009 at 6:27 PM In Reply to: Self Directed IRA and Flipping... Capital Gain??? posted by Richard on November 04, 2009 at 10:47 AM It makes me nervous that Rick is being quiet on this topic. He's let a few tidbits out that have been valuable to me on this. Disclaimer, I'm not a cpa, just an investor that wants to make the most money possible (preferably paying little taxes along the way). Flipping is fine in an IRA, if your IRA custodian will allow it. Your taxes are deferred if it is a regular IRA. In a Roth, there is no deferal. Taxes have been paid and gains are tax free. IF you are not hit with UBIT. How to avoid UBIT. Don't use any leverage. If you are buying TS properties, buy only 1st TDs (and hopefully big property tax liens to get some small stealth leverage). It's the leverage that triggers UBIT for flipping. I have IRA's as investors in my LLC. So far, so good. I can also have my IRA invest in my LLC, but have to be very careful. If my IRA is an investor in my LLC, I CAN NOT personally receive any profit or commision or get paid back for that lamp I bought at Home Depot. No money to me, or my corp, or my daughter. Nothing. BTW, the Roth conversion for 2010 is a little more juicy, but I don't think they dropped all income restrictions. I think they just raised the income limit to 255k for married filing joint, etc. check it out (preferably with a cpa). OK, Rick, your turn, Mark Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : It makes me nervous that Rick is being quiet on this topic. He's let a few tidbits out that have been valuable to me on this. : Disclaimer, I'm not a cpa, just an investor that wants to make the most money possible (preferably paying little taxes along the way). Flipping is fine in an IRA, if your IRA custodian will allow it. Your taxes are deferred if it is a regular IRA. In a Roth, there is no deferal. Taxes have been paid and gains are tax free. IF you are not hit with UBIT. How to avoid UBIT. Don't use any leverage. If you are buying TS properties, buy only 1st TDs (and hopefully big property tax liens to get some small stealth leverage). It's the leverage that triggers UBIT for flipping. : I have IRA's as investors in my LLC. So far, so good. I can also have my IRA invest in my LLC, but have to be very careful. If my IRA is an investor in my LLC, I CAN NOT personally receive any profit or commision or get paid back for that lamp I bought at Home Depot. No money to me, or my corp, or my daughter. Nothing. : BTW, the Roth conversion for 2010 is a little more juicy, but I don't think they dropped all income restrictions. I think they just raised the income limit to 255k for married filing joint, etc. check it out (preferably with a cpa). : OK, Rick, your turn, : Mark [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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