Transfer of property from LLC to SD IRA

[Mark Sewell]

So finally, after much needless delay and procrastination, I have submitted the docs required to move some leftover shrapnel from other funds to a SD IRA here in Houston. Won't be a ton of cash, but might be enough to do something small, using HM or maybe a subject to deal.

Now I have an LLC, and the LLC is paying for a bit of marketing expenses related to attracting sellers -- direct mail, FB ads, phones/internet, etc. Everybody gets that. Let's figure that, on average, it costs about $5,000 to buy a house.

Now imagine that I am a wholesaler (I am not, or at least that is not my objective).  If I get a deal, I could assign it to one of my BP buddies for an assignment fee.  I get how this works.  

But my question is, can I wholesale this to myself, or rather can my LLC assign a contract my SD IRA? That would allow me to recoop a bit of my valid expenses in the LLC.

The concern here is that this would somehow mix up my post tax money with my pre-tax IRA and thus land me in hot water.

[Dmitriy Fomichenko]

@Mark Sewell

No, what you are describing would be considered "Prohibited Transaction". You are considered to be 'disqualified person' to your IRA and the IRS rules prohibit any transaction between the two.