SDIRA/LLC prohibited transactions

[Jim Bentley]

Thanks for the info provided to my previous questions; it's been a big help. I have a couple more questions about self-directed IRA/LLCs.

- It looks like my wife's parents are not defined as disqualified persons; sons-in-law are disqualified, but not fathers-in-law. Is this correct? If so, would there be any issues with using my father-in-law as a property manager? He's been doing his own rentals for 50 years, and he's a licensed electrician. I know he does quality work, I can trust him, and I'd just as soon pay him as a stranger.

- The rules allow for gold American Eagles as a valid investment. Is it legal for my LLC to purchase these, and for me to physically retain possession (in a safe deposit box)?

- Similar to the American Eagle question, if my LLC purchases a physical item as an investment and then resells it at a profit, are there any problems with doing so? (e.g. I found an AR-15 at a local gun dealer for $1500 yesterday; I know I could resell that particular model for twice that.)

My impression is that the all three of these are legal, but they seem to be veering into 'to-good-to-be-true territory.

[Steven Hamilton II]

Internal Revenue Code Section 4975(e)(2)

http://www.irafinancialgroup.com/wp/irs-confirms-certain-prohibited-transaction-rules/

"For purposes of section 4975(e)(6) of the Code family members only includes the following:
The IRA owner's (which in this case would be the fiduciary of the IRA under section 4975(e)(A) and section 4975(e)(3)) spouse Ancestors (Mom, Dad, Grandparents) Lineal Descendents (daughters, sons, grandchildren)
Spouses of Lineal Descendents (son or daughter-in-law)"

http://www.law.cornell.edu/uscode/text/26/4975

-Steven