Legal Question in Tax Law in California

Self-Directed IRA and Use of LLC
I am interested in moving my IRA to a self-directed IRA to purchase real estate. My IRA is divided predominantely ROTH, a small portion 6K rollover and 6K traditional. How can the self-directed be done and should I turn it all into a Roth at this juncture first? Second Q: My Research indicates that I should first create an LLC, have the IRA own a portion (how much??) of the LLC, and the LLC purchase the real estate. I am a CA resident. Can I create a NV LLC, what are the benefits/pitfalls. How does CA view this, if it is a NV LLC. Can the IRA be the sole member of the LLC? Can the IRA comember the LLC with a nonIRA person (namely me). What is the best way to set this up and do you have any recommendations for self-directed IRA custodians for RE investing? Also, lastly, my IRA suffered great losses in 2000 & never recovered to principal amount, how is this affected, e.g., the basis in the ROTH, etc. are there write-offs or other benefits due to me from suffering the loss?

Asked on 3/14/07, 4:16 am

Donald Field Donald L. Field, Jr., Attorney at Law

0 users found helpful

0 attorneys agreed

Re: Self-Directed IRA and Use of LLC

You will need to engage an experienced tax attorney to obtain answers to your many questions and develop a sound strategy.

Answered on 3/15/07, 1:19 pm

Keywords

Match Any Match All

Country

State

Area of Law