Prohibited Transaction?

[David Frol]

My Roth IRA owns less than 10% interest in an LLC that invests in commercial real estate. One of the projects of the LLC is now completed and we are ready to list it.

Can I be the listing agent for this transaction since I own less then 49% interest in the LLC or would this still be a prohibited transaction?

Thank you in advance for your feedback!

[Peter Davis]

David,

Not an attorney but ANY self dealing within a SDA IRA is considered a prohibited transaction. I would not take the chance or risk of penalties to save on some RE commission. From what I have read and researched you can't even change a door knob. Kills me to pay someone to do these things but not worth the risk to your entire investments.

If you still want to do this I would check with appropriate tax accountant who is very familiar with these types of IRA's. There are not many out there who are very good and your custodian will not give you an answer for fear of being wrong.

Good luck

Pete