If you talk to the average CPA, he'll tell you that UBIT is the boogeyman and is to be avoided... always. Discussing this topic with an above average CPA (such as Eric Wikstrom of Integrated Wealth Strategies) yields different advice. The Two Types of UBIT Triggered from a trade or business - if a … [Read more...] about Unrelated Business Income Tax – UBIT for Solo 401(k) & IRA accounts
self directed
Self Directed IRA/401k vs. 1031 and other conventional RE tax strategies
Conventional Tax Strategies for Real Estate Many real estate investors boast of their tax strategy as involving one or more of the following: Depreciation - This is a tax concept where the property owner pretends that his property is decreasing in value. For residential real estate, it assumes that … [Read more...] about Self Directed IRA/401k vs. 1031 and other conventional RE tax strategies
Filing Deadlines: 5500-EZ & 990-T
5500-EZ for Solo 401(k) plans If your Solo 401(k) plan assets exceeded $250,000 in value in 2007, a 5500-EZ must be filed by July 30, 2008. This is an informational return used to report plan value to the IRS and does not require any tax payment. 990-T for IRAs with mortgage financed real estate If … [Read more...] about Filing Deadlines: 5500-EZ & 990-T
What's so special about the IRA LLC?
Ahhh... the single most mis-answered question in the self directed IRA world: Customer: I've noticed it costs more to setup an IRA LLC than it does a general purpose LLC. What's so special about the IRA LLC? LLC Facilitator: The Operating Agreement has special language. Putting together an IRA LLC … [Read more...] about What's so special about the IRA LLC?
Self Honesty: Stock Market Strategies Worth Considering
While I generally avoid mutual funds like the plague, I don't avoid the stock market altogether. I'll split what I do in the stock market into two categories: long and short. Either way, I'm honest with myself in admitting that no matter what I do in the stock market, it will be speculative and … [Read more...] about Self Honesty: Stock Market Strategies Worth Considering
Stock Market Profits: Luck, Insider Trading, Arbitrage, Big Fish, and Geniuses
Luck... Doing very well in publicly traded securities is sometimes a streak of good luck. I've had a terrific run on the craps table in Vegas many times. Eventually, I run out of good luck. Many people experience the same thing with trading. Insider Trading... This is when a person has non-public … [Read more...] about Stock Market Profits: Luck, Insider Trading, Arbitrage, Big Fish, and Geniuses
Saving vs. Investing vs. Surrendering
Has your saving really been a loss? Has your investing really been saving? Let's find out. To start, here are my definitions... Investing - the placing of assets to build wealth in a way where overall return can be maximized and risk minimized confidently, competently, and consistently. Saving - the … [Read more...] about Saving vs. Investing vs. Surrendering
Landlording your IRA LLC's properties – Is it allowed?
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 … [Read more...] about Landlording your IRA LLC's properties – Is it allowed?