1 INVESTING IRA AND QUALIFIED RETIREMENT PLAN ASSETS IN REAL ESTATE By: Charles M. Lax, Esq. I. DEFINITIONS A. What is a prohibited transaction? 1. A prohibited transaction is defined in IRC 4975(c)(1) as any direct or indirect: a. Sale or exchange, or leasing of any property between a plan and disqualified person; b. Lending of money or other extension of credit between a plan and disqualified person; c. Furnishing of goods, services, or facilities between a plan and disqualified person; d. Transfer to, or use by, or for the benefit of, a disqualified person of the income or assets of a plan; e. Act by a disqualified person who is a fiduciary, whereby he deals with the income or assets of a plan in his own interest or for his own account; or f. Receipt of any consideration for his own personal account by any disqualified person who is a fiduciary from any party dealing with the plan in connection with a transaction involving the income or assets of the plan. 2. A plan is defined to include an IRA and a tax-qualified plan (IRC 4975(e)(1)).
2 3. A disqualified person is defined in IRC 4975(e)(2) and includes: a. A fiduciary (generally the IRA owner will be a fiduciary); b. A person providing services to the plan; c. An employer, any of whose employees are covered by the plan; d. An employee organization, any of whose members are covered by the plan; e. An owner, direct or indirect, of fifty (50%) percent or more of i. the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation; ii. iii. the capital interest or the profits interest of a partnership; or the beneficial interest of a trust or unincorporated enterprise, which is an employer or an employee organization described in subparagraph (c) or (d) above. f. A member of the family (spouse, ancestor, lineal descendant and spouse of an lineal descendant) of any individual described in subparagraph (a), (b), (c) or (d) above; g. A corporation, partnership, or trust or estate of which (or in which) fifty (50%) percent or more of
3 i. the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation; ii. iii. the capital interest or profits interest of such partnership; or the beneficial interest of such trust or estate is owned directly or indirectly, or held by persons described in subparagraph (a), (b), (c), (d) or (e) above. h. An officer, director (or an individual having powers or responsibilities similar to those of officers or directors), a ten (10%) percent or more shareholder, or a highly compensated employee (earning ten (10%) percent or more of the yearly wages of an employer) of a person described in subparagraph (c), (d), (e) or (g) above; i. A ten (10%) percent or more (in capital or profits) partner or joint venturer of a person described in subparagraph (c), (d), (e) or (g) above; or j. The Secretary, after consultation and coordination with the Secretary of Labor or his delegate, may by regulation prescribe a percentage lower than fifty (50%) percent for subparagraphs (e) and (g) above and lower than ten (10%) percent for subparagraphs (h) and (I) above. 4. Plan Assets are generally determined in accordance with DOL Reg a. Generally, if a plan has an equity investment in another entity, its assets include the equity interest and an
4 undivided interest in each of the entities underlying assets. b. Significant exceptions apply if: i. The entity is publicly traded; ii. iii. Qualified plans and IRAs own less than twentyfive (25%) percent of the entity s equity; or The entity is a real estate operating company ( REOC ). A REOC is generally an entity of which fifty (50%) percent or more of its assets are invested in real estate in which the REOC engages directly in its operation and development. c. Notwithstanding the above, if a plan/ira or a plan/ira and related parties own all of the entity s interests, the entity s assets will be plan assets regardless whether the REOC or other exceptions apply. DOL Reg (h)(3). 5. Consequences of a prohibited transaction. a. In a qualified retirement plan, an excise tax equal to fifteen (15%) percent of the amount involved for each year will be imposed against the disqualified person. If the IRS issues a notice to correct, the excise tax increases thereafter to one hundred (100%) percent of the amount involved. b. If an IRA or an IRA owner engages in a prohibited transaction with his/her IRA, there is a deemed distribution of all of the IRA s assets.
5 B. What is unrelated business taxable income ( UBTI )? 1. UBTI is generally the plan s gross income less applicable deductions derived from an unrelated trade or business. 2. An unrelated trade or business is one in which the business activity is not related to the entity s tax exempt status (i.e., producing income through the sale of a product or rendering a service). 3. Certain types of passive income are expressly exempted from treatment as UBTI, such as: a. Dividends and interest (IRC 512(b)(1)); b. Royalties (IRC 512(b)(2)); c. Rent from real property and from personal property which is incidental to the rent from real property. However, rent from real property will be UBTI if more than fifty (50%) percent of the total rent is attributable to related personal property. Real property rent will also be UBTI if its amount depends in whole or in part on any lessee s income or profits (other than an amount based on a fixed percentage of receipts or sales) (IRC 512(b)(3)). Hotel room rentals are generally treated as UBTI because they are considered to be income for services. d. Gains from the sale, exchange, or other disposition of property, unless the property is inventory or is held for sale to customers in the ordinary course of business.
6 4. If the plan is a partner of a partnership or a member of a limited liability company, the plan s share of the income will be taxed as UBTI, if the income has a UBTI character. 5. UBTI is generally taxed to the plan at trust tax rates (which may be higher than individual and corporate tax rates). See IRS Form 990-T. C. What is Unrelated Debt-Financed Income ( UDFI )? 1. UDFI is a type of and is taxed like UBTI. UDFI is income which an IRA or qualified retirement plan has generated through debt-financed property, even if it is a type of income which would otherwise not constitute UBTI (IRC 514(a)). Typical examples of UDFI are gains from securities acquired through the use of margin and rents, and capital gains from property acquired through debt-financing. 2. The Code and tax regulations set out complex rules for calculating the amount of UDFI. a. Basically, the amount of UDFI with respect to any debtfinanced property for any year, is the income generated by the property, multiplied by a fraction, the numerator of which is the average acquisition indebtedness for that property for that year, and the denominator of which is the average amount of the adjusted basis for that property for that year (IRC 514(a)(1)). b. Example: An IRA has a fifty (50%) percent interest in an LLC, which purchased raw land in 2005 for $50,000, $40,000 of which was debt-financed. The land is sold in 2006 for $100,000 (resulting in gain of $50,000). Assume that the financing was through an interest-only
7 note (so that the indebtedness remained the same from acquisition to sale), there were never any adjustments to the LLC s basis in the land, and there are no deductions with respect to the property. The IRA s share of income upon the sale is fifty (50%) percent of $50,000, or $25,000. The fraction for determining how much of the $25,000 is UDFI is 4/5 (the $40,000 average acquisition indebtedness over the $50,000 average amount of the adjusted basis). Thus, $20,000 (i.e., 4/5 of $25,000) of the IRA s income from the sale of the land is UDFI. 3. Debt-financed real estate required by a qualified retirement plan (and not an ERA) will not generate UDFI if certain requirements of IRC 514(c)(9) are met. a. None of the following may occur for the exception to apply; i. The acquisition price must be fixed at the date of acquisition: ii. The amount of indebtedness, the amount payable, or the timing of payment may not be contingent on revenues or profits; iii. iv. The property is leased back to the seller, an entity or entity related to the seller, or a party or entity related to the trust; or The financing may not be provided by the seller, a party or entity related to the seller, or a party or entity related to the trust.
8 b. The exception generally will not apply if the trust is a partner and the partnership holds the debt financed real estate unless one of the following occurs: i. All of the partners are qualified retirement plans or other tax qualified entities; or ii. There are no special allocations of profits and losses. II. ISSUES AND CONCERNS A. Locating a custodian or trustee. 1. IRAs cannot be self trusteed by the IRA owner. 2. The custodian or trustee of an IRA must either be a bank, credit union, or a corporation, subject to the supervision of state banking laws, or a person who meets the requirements of IRC Reg (e)(1). a. Generally this requires the ability to show financial ability, continuity, fiduciary experience, etc. b. I know of no individual who has ever qualified. 3. Financial institutions are generally uncomfortable holding real estate as an IRA custodian due to: a. Environmental concerns and liability; b. Valuation obligations; c. Management responsibilities; and d. Establishing systems for collecting income (if pertinent) and paying expenses.
9 4. Some institutions have marketed their ability to serve as a selfdirected IRA custodian holding real estate. See: a. PenscoTrust Company at and b. Sterling Trust Company at B. Managing improving the real estate ( Servicing the Real Estate ) by the IRA owner. 1. Servicing the real estate could be construed as a trade or business of the IRA owner, subjecting them to income taxes and self employment taxes for the value of their personal services. 2. Providing management services, or physically improving the real estate (i.e., swinging a hammer) could be deemed a contribution and, if excessive, subject the IRA owner to the excise tax for excessive IRA contributions. 3. Providing services to the IRA by a disqualified person is a prohibited transaction which would disqualify the IRA and cause it to be taxed to the IRA owner. 4. The only real solution to this issue is for the real estate to be managed and improved by independent third parties. C. Financing the acquisition and operation by an IRA. 1. Acquisition indebtedness leads to UDFI and taxability of earnings. 2. Loans to the IRA are difficult to obtain in any event, because the loan cannot be guaranteed. This would constitute a prohibited transaction.
10 3. The IRA owner or the disqualified person cannot loan IRA funds to acquire or maintain the real estate. This would constitute a prohibited transaction. 4. The IRA owner can t merely contribute more than the IRA limit. This would constitute an excessive contribution, subject to the six (6%) percent excise tax. 5. The only real solution is to be certain that the IRA holds enough cash to complete the acquisition and cover any shortfall if the income from the property is insufficient to pay operating and maintenance expenses. D. Implication of IRS Notice Ostensibly this Notice is limited to Roth IRAs and attempts, by taxpayers, to make disguised excessive contributions. a. These have been categorized as listed transactions requiring special reporting to the IRS. b. Principally, it covers taxpayers' attempts to artificially shift income from their own businesses to tax sheltered Roth IRAs. 2. The IRS, however, also discussed prohibited transaction implications for all IRAs (regular and Roth). a. The Notice contains a statement which suggests that if: (i) an entity of which any IRA is a substantial owner engages in a transaction with a disqualified person ; (ii) the IRA can direct that transaction; and (iii) the transaction would be a prohibited transaction if engaged in directly between the IRA and the disqualified person, then the transaction would be a prohibited transaction,
11 regardless of the nature of the business entity. For example, it would appear that transactions such as loans, sales, or payment of compensation between that business entity and the disqualified person would be prohibited transactions if the IRA or IRA owner can require the transaction to take place, regardless of the nature of the entity s business. b. It appears, however, that such transactions are permissible if they do not require the approval of the IRA or related IRAs, the entity is not created to circumvent the prohibited transaction rules, and if the assets of the business are not treated as IRA assets under the plan asset rules. See Section I(A)(4), above. c. On the other hand, the mere approval of the IRA or IRA owner of the payment of a dividend by an entity owned or controlled by the IRA was not a prohibited transaction. i. See Swanson v. Commissioner 106 T.C. 76 (1996). ii. The Court reasoned that receipt of the dividend by the IRA was consistent with the purpose for which the IRA was established and applies to all other similarly situated parties. d. Here are some examples involving situations in which there may be an issue of whether a transaction between the entity and the disqualified person is prohibited: i. Example 1. Z s IRA owns seventy (70%) percent of an operating company, X. An independent investor, Y, owns the other thirty (30%) percent.
12 All company decisions are made by majority vote of its owners. X may not pay Z compensation for services, or enter into other transactions with Z, or persons or entities who are also disqualified persons. This is because the IRA, by virtue of its ability to control the majority vote, can require X to enter into such transactions with Z and those transactions would be prohibited transactions if they were between the IRA and Z directly. It does not matter that X is an operating company. ii. Example 2. Same facts as in Example 1, except that the compensation or other transactions with Z or related persons can occur only with the approval of Y (for example, with the approval of the independent thirty (30%) percent investor). The transactions would not be prohibited transactions, as long as they are at arm s length for legitimate purposes. Note: The independent person should really be an independent. For example, if the independent person is someone who would just rubber-stamp what the IRA wants to do, the IRS probably would not treat that person as independent. E. Joint ownership of an entity or property by an IRA and its holder. 1. Prohibited transactions include situations where a disqualified person uses plan/ira assets for his own benefit.
13 2. ERISA Opinion Letter A (7/27/00) considered the issue of the joint ownership of a partnership by an IRA and an IRA holder. 3. The IRS indicated that a fiduciary (IRA owner) may not rely upon, and cannot be otherwise dependent upon, participation in an IRA in order to undertake or continue a personal benefit. 4. This opinion has been interpreted to mean that co-investment is permissible as long as the IRA owner is able to establish that he had sufficient other personal assets in order to carry the investment if IRA assets were not used. III. CASE STUDIES A. Acme Corp. ( Corporation ) maintains the Acme Corp. Profit Sharing Plan ( Plan ). Harvey Smith owns one hundred (100%) percent of the stock of Corporation and is the trustee of Plan. The Plan covers approximately 25 employee/participants. The Plan holds approximately $500,000 in assets. Smith, who has a need to raise cash (for his daughter s wedding), owns a piece of vacant property worth $1 million. Smith believes it will be worth at least $2 million in three (3) years and will be ready for development. Rather than selling it to a third party, Smith would rather that the Plan enjoy the future appreciation and will sell it to the Plan for a $400,000 down payment and an interest only balloon note of $600,000 maturing in three (3) years. What issues should be considered? 1. Issues inherent to qualified retirement plans. a. Is this a prudent investment?
14 b. Is there sufficient liquidity to pay interest on the note and benefits to terminating participants? c. Plan assets must be valued annually. d. Does the transaction violate the exclusive benefit rule of IRC 401? 2. The sale to Plan by the trustee/shareholder is a prohibited transaction. 3. What if the property was owned by and acquired from Smith s cousin Michael Jones ( Jones )? 4. What if Smith sold the property to Jones, who then sold it to the Plan? 5. If the property was sold three (3) years later for $2 million, what would be the tax consequences to the Plan? 6. What consequences or issues would arise if the Plan developed the property by financing, building and selling twenty-five (25) single family residential units? B. Mark Green ( Green ) and Green s IRA desired to acquire a small strip shopping center. The purchase price of the center is $500,000. Green contributes $80,000 and receives an undivided eighty (80%) percent interest and Green s IRA contributes $20,000 (of a total of $22,000 of the assets held by the IRA) receiving an undivided twenty (20%) percent interest in the center. The center is fully leased and provides good cash flow. It is, however, forty (40) years old and requires ongoing maintenance. Green anticipates making many of the repairs himself. A new roof may be needed next year.
15 Sixth Fourth Bank ( Bank ) is willing to finance $400,000 as long as the loan is secured by the center and Green guarantees the loan. What issues should be considered? 1. What are the current tax consequences if the center produces taxable income or taxable losses? 2. What are the tax consequences if the center is sold for a profit at a later date? 3. Are the following prohibited transactions? a. Co-investment in the center, b. Securing the Bank loan with the center, c. Green s guarantee of the Bank loan, d. Green s providing maintenance services to the center, and are there other issues that should also be considered with respect to Green s services? 4. Are any of the results changed if Green and Green s IRA form an LLC to acquire the center? 5. Are any of the results changed if Green and Green s IRA own ninety (90%) percent and Green s cousin owns ten (10%) percent of the LLC?
Use of Retirement Accounts to Finance Investment Real Estate Acquisition Jeff O BrienO Mansfield Tanick & Cohen, P.A. What is an IRA? An individual retirement account (IRA) is the blanket term for a form
SELF-DIRECTING IRA ASSETS INTO RELATED INVESTMENTS OR INVESTMENTS WITH RELATIVES ISSUES, CONCERNS AND POSSIBLE CONSEQUENCES 1 I. How These Questions Arise By Pamela D. Perdue 2 Anyone who deals with IRAs,
ADVISORS JOURNAL (August 2010, Current Comment 10 36) Potential Pitfalls in IRA Money Movement and Non Public Investments Owners of IRAs and other types of qualified plan accounts are allowed a great deal
Presents: The Solo 401(k) Plan The Ultimate Retirement Solution for the Self Employed January 2012 Disclaimer: The information provided in this presentation/document is not legal advice, but general information
DELIA LAW Ph 800.980.3398 Fx 619.330.3507 Cell 619.985.7101 12707 High Bluff Drive Suite 200 San Diego, CA 92130 10800 Wilshire Boulevard Suite 1101 Los Angeles, CA 90024 www.deliataxattorneys.com www.losangeles-tax-attorneys.com
ASSET PROTECTION PLANNING FOR THE IRA R. Glen Woods Woods Erickson Whitaker Miles & Maurice LLP 1349 Galleria Drive Henderson, NV 89014 (702) 433-9696 RGWoods@wewmmlaw.com Many business owners, professionals
Presented by: 1 Presented by: DMITRIY FOMICHENKO President Sense Financial Services LLC 949-228-9393 Dmitriy@SenseFinancial.com Sense Financial Services LLC is not a fiduciary and does not provide legal,
HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: HB 1141 Conveyances of Land SPONSOR(S): Stargel TIED BILLS: None IDEN./SIM. BILLS: SB 1434 REFERENCE ACTION ANALYST STAFF DIRECTOR 1) Civil Justice Committee
Louisville Realty Associates Robert Kelly 815 Walnut Street A Louisville, CO 80027 720-284-9211 www.louisvillerealtyassociates.com Your Guide to Real Estate in an IRA Information is provided by New Direction
Avoiding Fiduciary Liability In Real Estate Investments Made By Pension Plans Stanley L. Iezman Stanley Iezman is Chairman of the Board and Chief Executive Officer of American Realty Advisors and is responsible
PURCHASING REAL ESTATE IN A SELF DIRECTED IRA OR QUALIFIED PENSION PLAN By Maurice M. Glazer, CEO GLAZER FINANCIAL NETWORK In today s market or lack of market, most baby boomers have most of their retirement
Can I purchase real estate in my IRA? Yes. Why does my current IRA brokerage firm say I can t buy real estate in my IRA? Custodians determine the type of assets they will hold and may not choose to hold
Real Estate IRA Frequently Asked Questions Simply put, a self-directed individual retirement account (IRA) gives you the freedom, flexibility, and choice of how to invest your hard-saved dollars. A real
INVESTING IRAs in REAL ESTATE AVOIDING THE PITFALLS 2014 OSCPA REAL ESTATE CONFERENCE June 18, 2014 Portland, Oregon Presented by: Vince Cacciottoli Research assistance it by Steve Nofziger Anchorage Beijing
AUTHOR John A. Wilhelm, Partner Venable, LLP 8010 Towers Crescent Drive Suite 300 Vienna, VA 22182 PH: 703.760.1917 FAX: 703.821.8949 JAWilhelm@Venable.com CONSIDERATIONS IN ESTABLISHING A LEVERAGED ESOP
A Traditional IRA is a retirement plan that allows you to save money for retirement. In the case of a traditional IRA, you may also be offered an immediate tax shelter for the contributions that you make
Creating Wealth with your IRA and Real Estate Summary Guide The Self Direct IRA and its Connection to Real Estate Investment While some busy professionals may choose to invest every extra penny they have
State of South Carolina Department of Revenue 301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214 Website Address: http://www.sctax.org SC REVENUE RULING #06-12 SUBJECT: Tax Rate Reduction
1999 Instructions for Schedule E, Supplemental Income Loss Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual
Cross Border Tax Issues By Reinhold G. Krahn December 2000 This is a general overview of the subject matter and should not be relied upon as legal advice or opinion. For specific legal advice on the information
EMPLOYEE STOCK OWNERSHIP PLANS AN EXTRAORDINARY FINANCIAL AND EMPLOYEE BENEFIT TOOL FOR THE CLOSELY-HELD COMPANY Copyright 2015 Olson Mills Law Firm, LLC All Rights Reserved PART TOPIC PAGE INTRODUCTION...1
Overview of the Unrelated Business Income Tax Michele A. W. McKinnon Although organizations described in Internal Revenue Code section 501(c)(3) are exempt from federal income tax, certain activities can
The Checkbook IRA - Welcome to Freedom Contents Self directed IRA accounts Benefits and Guidelines IRA LLC Structure How can it benefit me? Creative Investment Possibilities How Much does it cost? What
May 2, 2008 Pennsylvania Realty Transfer Tax No. RTT-08-003 Substitution of IRA Custodian Transfer from IRA Custodian to IRA Owner ISSUES: 1. Is a deed that evidences the change in a person s individual
Real Estate Investments with your Self-Directed IRA Table of Contents Introduction 2 Self- Directed IRA Basics 3 Investments Allowed in a Self-Directed Retirement Plan 4 Disallowed Investments in a Self-Directed
EMPLOYEE STOCK OWNERSHIP PLANS AN EXTRAORDINARY FINANCIAL AND EMPLOYEE BENEFIT TOOL FOR THE CLOSELY-HELD COMPANY Ice Miller LLP Legal Counsel 2013 Ice Miller LLP All Rights Reserved TABLE OF CONTENTS PART
Presents In Roth We Trust Investing Tax Free with a Self Directed Roth IRA May 30, 2012 Disclaimer: This presentation is intended only as a general discussion of these issues. It is not considered to be
The Real Estate IRA Frequently Asked Questions Simply put, a self-directed individual retirement account (IRA) gives you the freedom, flexibility, and choice of how to invest your hard-saved dollars. A
Vol. 19, No. 5 May 2012 Do You Really Want to Do That? IRAs and the Prohibited Transaction Provisions By David C. Kaleda While an individual retirement account (IRA) is not subject to the Employee Retirement
PART OF THE LEHMAN TAX LAW KNOWLEDGE BASE SERIES United States Taxation Of Investors U.S. Taxation of Foreign Investors Non Resident Alien Individuals & Foreign Corporations By Richard S. Lehman Esq. TAX
WHAT EVERY LAWYER & ADVISOR NEEDS TO KNOW ABOUT SELF-DIRECTED IRAS BY: Mathew Sorensen, Partner KYLER KOHLER OSTERMILLER & SORENSEN, LLP 3033 N. Central Avenue, Suite 415 Phoenix, AZ 85012 Phone 602-761-9798
Memorandum To: From: Re: Noble Royalties, Inc. Honigman Miller Schwartz and Cohn LLP Unrelated Business Taxable Income: Income from Royalty Interests Date: February 23, 2009 This memorandum addresses the
DIRECTION LETTER IRA Holder Account # I have read and understand Prohibited Transactions in Self-directed IRAs (page 3). I will not personally benefit from this investment while it is held in my IRA. IRA
T.C. Memo. 2013-245 UNITED STATES TAX COURT TERRY L. ELLIS AND SHEILA K. ELLIS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 12960-11. Filed October 29, 2013. Troy Renkenmeyer,
July 18, 2007 Webinar Self-Directing Your Retirement for Real Estate: What Can I Really Do? Mathew N. Sorensen, J.D. www.kkolawyers.com Cedar City ~ Las Vegas ~ Beverly Hills ~ Salt Lake City Telephone
Self-Direct Your Retirement with Real Estate! Brought to you by: Presented By: Michael McNair Trust Officer IRA Services Trust Company Silicon Valley REIG Webinar Tuesday, March 5, 2013 DISCLAIMER This
Real Estate IRAs Made Easy About Advanta IRA As the nation s premier self-directed individual retirement arrangement (IRA) administrator, the regional offices of Advanta IRA have over 25 years of experience
SELF-DIRECTED INDIVIDUAL 401K ACCOUNT HOLDER DISCLOSURE AND HOLD HARMLESS P.O. BO 30007 ALBUQUERQUE, NEW MEICO 87190 P: 888-205-6036 F: 505-288-3905 OPERATIONS@HORIZONTRUST.COM Important! This form contains
Q&A with Natalie Choate: Buying Real Estate from a Self-Directed IRA Natalie Choate 06-09-06 Natalie Choate is the author of "The 100 Best and Worst Planning Ideas for Your Client's Retirement Benefits,"
Self-Directed Retirement Accounts & 1031 Exchange Investments Security Trust Company & James Brennan Esq., LL.M. Exchange Solutions Group Security Trust Company Security Trust Company is a retirement plan
Chris Stevenson, Esq. November 5, 2015 1 C Corps Pros: a) Venture Capital: Venture funds are usually partnerships i. Can t invest in S Corps (s/h restrictions on pship or foreign investors s/h; no pref
E. FOR-PROFIT SUBSIDIARIES OF TAX-EXEMPT ORGANIZATIONS 1. Introduction Taxable for-profit subsidiaries of organizations exempt under IRC 501(c) are not a new phenomenon. The formation of such organizations,
The Checkbook IRA Invest Like a Billionaire Contents Offshore Checkbook IRA LLCs Benefits and Guidelines How it Works Tax Benefits of Going Offshore Invest Like a Pro How Much does it cost? Summary What
ABILITY TO TRANSFER "S" CORPORATION STOCK TO INTER VIVOS TRUSTS (Business Advisory No. 10) Over the years, we have found that many of our clients elect to transfer their shares of "S" corporation stock
The US Private Equity Fund Compliance Guide How to register and maintain an active and effective compliance program under the Investment Advisers Act of 1940 Edited by Charles Lerner, Fiduciary Compliance
Information Regarding U.S. Federal Income Tax Calculations in connection with the Acquisition of DIRECTV by AT&T The following information is provided to illustrate how to determine taxable gain on DIRECTV
UNDERSTANDING THE PROHIBITED TRANSACTION RULES FOR SELF DIRECTED IRAS BY: Mathew Sorensen, Partner KYLER KOHLER OSTERMILLER & SORENSEN, LLP 3033 N. Central Avenue, Suite 415 Phoenix, AZ 85012 Phone 602-761-9798
Part 13 Close companies CHAPTER 1 Interpretation and general 430 Meaning of close company 431 Certain companies with quoted shares not to be close companies 432 Meaning of associated company and control
CHERRY CREEK CORPORATE CENTER 4500 CHERRY CREEK DRIVE SOUTH #600 DENVER, CO 80246-1500 303.322.8943 WWW.WADEASH.COM DISCLAIMER Material presented on the Wade Ash Woods Hill & Farley, P.C., website is intended
Notice 97-34, 1997-1 CB 422, 6/02/1997, IRC Sec(s). 6048 Returns of foreign trusts foreign gift reporting requirements tax This notice provides guidance regarding the new foreign trust and foreign gift
2013 Ohio Small Business Investor Income Deduction Instructions for Apportioning Business Income Solely for Purposes of Computing the Small Business Investor Income Deduction hio Department of Taxation
Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company Timely re-evaluation of choice of entity will enhance the shareholder value of your contractor client By Theran J. Welsh
FORMALIZING YOUR FIRM: LLC VERSUS S CORPORATION VERSUS C CORPORATION by Stephanie L. Chandler 1 and Lisa S. Miller 2, Jackson Walker L.L.P. As we work with entrepreneurs in setting up the structures for
Business Start-Ups with Tax-Deferred Retirement Plan Assets Justin L. Mills, Esq. 1 2014 Experts estimate that the aggregate value of all assets held by defined benefit plans, defined contribution plans
MULTI FAMILY FUND Investing in US Real Estate in a Self-directed IRA Marc Mathys, Attorney-at Law An estimated 3 trillion dollars are investing in stocks, bonds, mutual funds and CD s with tax deferred
DESCRIPTION OF THE PLAN PURPOSE 1. What is the purpose of the Plan? The purpose of the Plan is to provide eligible record owners of common stock of the Company with a simple and convenient means of investing
State Bar of Texas Charitable Lead Trusts Jeffrey N. Myers Bourland, Wall & Wenzel, A Professional Corporation Attorneys and Counselors 301 Commerce Street, Suite 1500 Fort Worth, Texas 76102 (817) 877-1088
Exclusion of Gain on the Sale of a Principal Residence, Interest Deductions, Home Office Rules 'Walter D. Schwidetzky Professor of Law University of Baltimore School of Law 1420 N. Charles St. Baltimore,
2007 Instructions for Form 8582 Passive Activity Loss Limitations Department of the Treasury Internal Revenue Service Section references are to the Internal rental passive activities. Overall loss is limited,
Equity Compensation in Limited Liability Companies October 6, 2010 Presented by: Pamela A. Grinter Frank C. Woodruff Introduction to Limited Liability Companies Limited liability companies were created
Self-Directed IRAs and Other Interesting Retirement Plan Developments WARREN L. BAKER JD, LLM F AIRVIEW LAW GROUP, PS 1910 FAIRVIEW AVE E., SUITE 500 S EATTLE, WA 98102 P: 206-753-0305 E: firstname.lastname@example.org
L. UBIT: SPECIAL RULES FOR PARTNERSHIPS by John Chappell and Charles Barrett 1. Introduction Most exempt organizations carry on all their activities directly within, typically, a notfor-profit corporation.
Self-Directed IRA Myths By Richard K. Matta Copyright 2009 Introduction A search of the internet quickly reveals that there are hundreds, if not thousands, of websites promoting one of the hottest financial
1 Build Your Business with Self- Directed IRAs Connection Wednesday, August 29 th, 11:30 CST objectives 2 WHAT are self-directed IRAs WHEN can retirement accounts own real estate WHY real estate make sense
TAXATION OF REAL ESTATE INVESTMENT TRUSTS January 2012 J. Walker Johnson and Alexis MacIvor I. Taxation of Real Estate Investment Trusts A. Qualification as a REIT 1. Eligible entities Section 856(a) lists
5 REASONS TO RECONSIDER YOUR SDIRA IN 2014 BY, CLINT COONS, ESQ Self Directed IRA Soo Easy Fund your account Find the investment Request funds to purchase We do the rest You manage the investment SDIRA
Self-Directed IRAs Made Easy All information provided is for discussion purposes only. Please consult your tax advisor before entering into any financial transactions. About Advanta IRA As the nation s
Foreign Person Investing in U.S. Real Estate Ian Shane Golenbock Eiseman Assor Bell & Peskoe LLP TTN New York Conference 2013 Foreign Purchases of U.S. Homes Foreign Home Buyers want to: Minimize tax on
Investment Structures for Real Estate Investment Funds kpmg.com Contents Investment Structures for Real Estate Investment Funds 01 Who Are the Investors? 02 In What Assets Will the Fund Invest? 03 Will
The income taxation of estates and trusts can be complex because, as with partnerships, estates and trusts are a hybrid entity for income tax purposes. Trusts and estates are treated as an entity for certain
FIRSTBANK PUERTO RICO INDIVIDUAL RETIREMENT ACCOUNT TRUSTS Individual Retirement Accounts Disclosure This Individual Retirement Account (IRA) Disclosure (hereafter Disclosure ) and the following documents:
Chapter 10 FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS Daniel Cassidy 1 10.1 INTRODUCTION Foreign companies with U.S. business transactions face various layers of taxation. These include income, sales,
Entrepreneur Rollover Stock Ownership Plan Real Estate Management Company First: Are you going to be Active or Passive? All of our clients have that entrepreneurial spirit, they choose ACTIVE. They are
AN INVESTOR S GUIDE: Tax-Advantaged Private Equity Investing Tax-Advantaged Private Equity Investing Institutions and financial professionals have long realized that private equity can deliver significant
Supplement No. 3 published with Gazette No.19 of 14th September, 1998. THE NATIONAL PENSIONS LAW (10 of 1996) (1998 Revision) THE NATIONAL PENSIONS (PENSION FUND INVESTMENTS) REGULATIONS (1998 Revision)
BARBER EMERSON, L.C. MEMORANDUM ESTATE FREEZING THROUGH THE USE OF INTENTIONALLY DEFECTIVE GRANTOR TRUSTS I. INTRODUCTION AND CIRCULAR 230 NOTICE A. Introduction. This Memorandum discusses how an estate
U..S.. Tax Guiide for Non-Resiidents Table of Contents A. U.S. INCOME TAXES ON NON-RESIDENTS 1. Nonresident Alien or Resident Alien? o Nonresident Aliens o Resident Aliens Green Card Test Substantial Presence
Employee Stock Ownership Plans May 2013 http://aicpa.org/ebpaqc email@example.com Topix Primer Series The AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) has developed this primer to provide Center
Restricted Stock Plans Key Employee Incentives Some S and C Corporation Considerations Michael A. Coffey Lisa J. Tilley, CPA P.O. Box 12025 Roanoke, VA 24022-2025 Phone: (540) 345-4190 1-800-358-2116 Fax:
Micah W. Bloomfield and Mayer Greenberg, Stroock & Stroock & Lavan LLP This Practice Note is published by Practical Law Company on its PLC Corporate & Securities and PLC Finance web services at http://us.practicallaw.
Part 5. Tax Credits for Qualified Business Investments. 105-163.010. (Repealed effective for investments made on or after January 1, 2013) Definitions. The following definitions apply in this Part: (1)
LLC OUTLINE Table of Contents I. INTRODUCTION... 1 A. Consider The Following Example:... 1 1. How should this trio proceed to organize?... 1 2. A Better Choice:... 1 B. Limited Liability Company... 2 1.
TAXPAYER SERVICE DIVISION FYI For Your Information Apportionment of Income C CORPORATIONS A C Corporation doing business only in Colorado will compute its tax on 100% of the Colorado taxable income. However,
Business Organization\Tax Structure One of the first decisions a new business owner faces is choosing a structure for the business. Businesses range in size and complexity, from someone who is self-employed