All Forum Posts by: Bernard Reisz

@Christopher Lombardi Self-insurance makes sense in some scenarios when approached with a well though-out risk management strategy. Also, there are many degrees and forms of self-insurance. Usually, you'll end up with some hybrid between pure self-insurance and purchased coverage. Some examples:

- High deductible policies are a form of self-insurance

- Stand-alone captive insurance w/ re-insurer backstop 

- Group captive w/ re-insurer backstop

There are many other approaches, but the key is a solid understanding of risk profile and risk management. (And, beware of promoters that are selling captive insurance as a tax-shelter; not saying that they none of them provide the purported tax benefits - just that you need a captive insurance tax expert help you make informed choices.)

When pursuing these accounts and accepting recommendations from people, it's important to:

• ensure there's no conflict of interest (e.g., substantial affiliate kickbacks) and 
• perform at least a modicum of due diligence on the provider (# podcast appearances aren't too helpful; check if their background to see if it's aligned with their claimed expertise, etc.)  

I assure you it's not above your head if you choose to work with someone that will be transparent with you, rather than a promoter using marketing gimmicks. 

As a CPA that works with an array of self-directed investors, I'm constantly astounded by the # of people that have signed-up for some mysterious account type for which they shelled-out substantial $$$ - and they don't even have clue as to what type of account it is from tax & labor law perspective. And, if they don't know what they have - they can't possibly operate it compliantly. 

Work with a provider that thrives on knowledge; avoid promoters that thrive on ignorance.

(Please do not ask me to specify which providers fall into either category. You'll have to exercise your own judgement.)

@Breanne Lemons Yes

@Breanne Lemons You're taking a great approach by seeking input from a qualified source. Use of these accounts opens new worlds of compliance, strategy, and planning.

@Todd Nurnberger Glad to share. It's at: 

https://www.passivewealthstrategy.com/self-directed-ira-myths-what-are-udfi-and-ubit-with-bernard-reisz/

@Alina Trigub @Todd Nurnberger Glad to chime in here, but I actually did a podcast with @Taylor L. about this topic and many have found it helpful. There's great info on this thread already, and you'll find more than can be put in a BP post in the recording.

@Alina Trigub Honored by the mention. Thank you.

@Mark Pedroza Honored!

@Hjiorst Fjioords You should certainly do extensive research prior to selecting a provider. Well-done research will make you an educated consumer and aid in your search for the right provider. Even after extensive research, you must feel extreme confidence in your provider, as there a many "unknown unknowns" that research won't uncover - and it's your choice of service provider that will determine how well those "unknown unknowns" are navigated.

@Justin Windham @Brian Eastman @Todd Goedeke haven't nearly as present on BP as I'd like to be, recently. Poking around the forums the last few days, I'm amazed at how the misinformation that's so pervasive elsewhere on the internet has made inroads to BP, as well. Nevertheless - thanks to you - BP remains one of the few places where if someone presents misinformation on these topics (QRP, EQRP, UBIT, UDFI, etc.), they can get still get honest and fact-based responses. Kudos!  

@Scott Anderson You've gotten great info from @Carl Fischer and @Bill Hampton. There are many highly qualified tax pros on BP, and it's a matter of finding the best fit for yourself. Based on your location and tax profile, I'd encourage you to get in touch with @Daniel Hyman.

As an aside, you won't technically be "filing taxes for your LLC" with the IRS; rather it will all be reported on your personal tax return.

The first year tax set up of your investment properties dictates current and future year tax deductions - so it's important that you get it right.