All Forum Posts by: Art Webb

I have a 14 unit Apartment building  under contract per $1,800,000.The property is in Benson, NC. I’m wholesaling $1,900,000 the closing date is July 14, 2025

@Art Webb The IRS requires that the name and TIN on a W-9 reflect the actual owner of the income for tax purposes. In the case of a single-member LLC owned by a self-directed IRA, the IRS considers the IRA (a trust) to be the owner - not the individual, and not the LLC.

The W-9 instructions and Form SS-4 guidance indicate that IRA trusts should obtain their own EIN, and that using your personal SSN could result in the income being reported as taxable to you personally. We do not want that.

The custodian's refusal to share its EIN does not shift the reporting obligation to the individual investor. Using the LLC's EIN is also problematic if the LLC is disregarded, because it doesn't reflect the proper taxpayer.

Generally, the approach many tax professionals recommend is to apply for an EIN for the IRA trust and use that EIN on Form W-9, listing the IRA as the payee. It's a nuanced area, so consulting your IRA custodian or tax advisor is always the best next step.

When you said:
"I did receive EIN for SDIRA with no instructions"
I am curious if you could expand on that.  It is possible this is the EIN you should be using.

 I know you never use your SS #, but when you set this up did you not get instructions. Who is your bank custodian?

@Art Webb I am not a CPA but you are the beneficial owner of the IRA. If there is ever a tax audit it falls back to you. So it seems appropriate that you would use your SS# for setting up the SDIRA. The LLC owned by the IRA can get it's own EIN number. It is easy to apply online. However since the LLC is a single member with you as Benefield owner then W_( forms say to use the owner of the LLCs tax ID number. Again that is you.

Who says not to use your own SS# and why? I think that is suspect advice by paranoid people.  Since this is for your SDIRA why don't you ask the custodian what is expected?

@Michael Plaks can you  help?

@Art Webb,

The proper way to fill out the W9 form is to enter the name of your IRA in line 1. Enter the name of the LLC in line 2. Select "Other" and enter "IRA Account" in 3. Use the exempt code 1 on line 4. Enter EIN of the custodian in Part 1. DO NOT ENTER YOUR SSN!!!