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Updated almost 7 years ago,
Questions regarding of Self Directed IRA
Hello,
I have some questions regarding of SD IRA.
Our company is a property investment company mainly concentrated on State Auction and we've been funded by the several clients through their SD IRA LLC accounts.
Per loan agreement between our company and the clients, we provide a specific rate of return yearly to our client who lend us their fund through their SDIRA LLC
We mainly flip the properties and sell them within three months. I don't think there is no tax consequences on client's ends since they lend us the fund as a loan which they are not directly involved in real estate. I wanted to make sure.
Should we provide documents such as a statement to our clients which shows the interest earnings we have promised to pay?Where should we deposit the interest rate to; Client's SDIRA Trust account FBO client's name or Client's SDIRA LLC checking account?
Your reply will be greatly appreciated. Thank you.