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Updated almost 4 years ago,
SD IRA transaction / product return question
Hi, hoping someone may have the answer to this question. I have checkbook control of my 401k using an LLC. I understand from my custodian that if I need to make a purchase of any materials for a property owned by that LLC, I may use my personal credit card to make the purchase and then make the payment on the credit card using my LLC's checking account (since LLC can't have a credit card).
I recently made a purchase of some flooring for a property that I was about to close on with my LLC, using my personal credit card and then paid off that charge using my LLC checking account.
Subsequent to that, I ended up not closing on that property and need to get a refund on the flooring I purchased.
What's the proper way to do this transaction as I already made the payment from the LLC checking account to my personal credit card.
I can have the refund go back to the personal credit card, but then what?
Since I would have a credit on my personal credit card, can I transfer the same amount from my personal checking account to the LLC checking account as if the purchase was never made. Or is that a prohibited transaction?
Seems like a a simple issue, but not sure what’s the proper, IRS compliant way of handling this transaction and ultimately getting the $ amount returned back to the LLC checking account since the product needs to be returned to the store.
Thank you very much!