Self Directed IRA - CPA recommendation?

[Jeremy Swathwood]

I recently invested with an experienced RE investor in Denver and am pleased with the relationship and results.  I would like to continue to invest with this person on future deals.  

My wife has an old 401k rollover from a prior job that we're both interested in rolling into a self directed IRA and investing in RE projects. Can anyone recommend a professional (I'm assuming a CPA vs attorney, but would like guidance) to help with this process?

We live in Aurora (Farm @ Arapahoe County, near Parker CO), so prefer someone within decent proximity (Denver is close, Aurora, Greenwood Village, Parker CO, etc).  

Much appreciate the help.  

Thanks.

[Dmitriy Fomichenko]

Jeremy,

If you wish to invest passively using your wife's self-directed IRA - all of the incomes and gains resulting from this investing will be sheltered from taxes inside of an IRA and it will not have an impact on your personal taxes. So in this case you don't really need a CPA.

If you invest in an active trade or business the incomes/gains from such activities will result in your IRA owing UBIT (Unrelated Business Income Tax). That is when you will need help of a CPA experienced in this area. Keep in mind that the IRA will owe taxes, not you personally. Also this tax tops at 39.6% so you better make sure that the numbers make sense before engaging in such investment. Retirement accounts were designed to be invested passively, and that is what makes most sense since all income is sheltered from taxes. There are several tax experts who are active here on the forum who might be able to assist you.

But first you need to decide which type of retirement account is the right fit for you: you can have a custodial self-directed IRA, or you can enhance it with the checkbook control by setting up Checkbook IRA (aka IRA owned LLC). And finally if you are self-employed your choice would be truly self-directed Solo 401k plan.