How to use my dad's self directed IRA to invest with me

[Juan Ayala]

My dad recently approached me that he would like to take the lump sum amount for his retirement and roll it over into a self-directed IRA. I have done real estate deals before, and he wants me to hook him up with some cash flow while also investing with me. How do I structure this deal? Can I purchase under my name, or should I form an LLC and make us both members? What about taxes? What can we claim and not claim... Thank you, BP family!

[Justin Windham]

@Juan Ayala

While this may be possible if structured correctly, it is generally not recommend because of the prohibited transaction rules. If you are seriously considering having an IRA co-invest with a disqualified person, I would recommend consulting an experienced legal advisor that can help you navigate the rules. It is also possible that what you want to achieve is not allowed. It all comes down to the details.