LLC

[Bil Casimir]

Hi Guys,

I have been helping my flip homes through her self directed IRA. We are shifting our focus to duplexes and I recommended we setup a LLC for protection and tax benefits. How would this scenario worked if I am her son and finding the deals, working with the contractors and basically my mom funds the deals? How would a LLC work regarding the taxes at the end of the year if we are both on the LLC? Any guidance would be appreciated.

Best,

[Dmitriy Fomichenko]

@Bil Casimir 

you are considered to be a 'Disqualified Person' to your mom's IRA. See IRS Publication 590: http://www.irs.gov/pub/irs-pdf/p590.pdf Therefore her IRA is prohibited from enaging in any transaction with you. The penalties are very severe, her IRA is at risk and I suggest you speak with qualified expert to ensure that you doing things correctly.