All Forum Posts by: Chris Yeung

@Nicholas Aiola

I encountered a new (I think weird problem). IRS sent me a letter (IRC section 6652) in regards to my 990T for my SDIRA (invested in a property) for tax year 2020. They are saying because of the taxpayer first act, the 990T should've been filed electronically. My tax preparer has been preparing my 990Ts ever since I bought the investment property back in 2016. They've always filed via snail mail and I've never encountered a problem. 

Even more strange is that I spoke to my tax preparer (they are a larger firm vs mom and pop) and they said they are working on this as their software doesn't allow for them file the 990T online. 

Have you heard of this from other people that needs to file 990Ts?

I've never received a nasty gram from the IRS and this has frazzled me a bit. 

P.S. I don't know if they're just that slow, but the IRS sent me the original return that was sent to them and it was stamped as received on September 29, 2021. The letter I received from them is dated July 11, 2022. 

@John Perrings Ok. I'll need to ask how to increase the death benefit. 

For the second question, it was based on the death benefit being locked at a certain amount and if the person doesn't do anything with the cash value.

@John Perrings - Thanks. I'll have to have a conversation with the agent on what I can do right now. 

In regards to building cash value, the death benefit would stay same regardless of cash value in the policy, correct? So for someone that does not intend/doesn't know how to take advantage of the living benefit, the minimum premium required for the policy is enough, right?

My parents bought this for me many years ago. I'm in the process of transferring ownership to me. The cash value currently is around 24K. The death benefit is only 100,000. I know I can borrow against the cash value, but I want to wait until I have more cash in the bank to get into syndications (which usually requires at least 50K). 

What can I do in the meantime with this policy?

Also, is there a way to increase the death benefit?

Hi Nicholas, 

I have a Financial verification form that a qualified professional should fill out to verify that my wife and I are accredited investors. I sent this to my tax preparer (since CPA qualifies as a qualified professional) and they responded by saying that this is something they are unable to do. Since this is my first time doing this, is that a normal response?

@Daria B. I must've missed your response. I didn't know about this and didn't know that I had to for Gainesville. As I mentioned, the local PM was surprised as well and said they were flooded with the same inquiries I had. 

@Jennifer Turner Thanks.

I did speak to my PM and they said they were surprised by it too and that they received multiple calls about this. I've forwarded the form to them to fill out and pay on my behalf to the city. 

I just received a notification that the property I own in Gainesville, FL requires a rental permit. This caught me off guard as I have owned the property (via self directed IRA) for 5 plus years and have not received any notification. I'm also using a local PM which I would think knows the requirements for rental properties. Is this something new?

@Darin L. @Andrew Smith

Thanks for the feedback. It's good to know you had good experiences.

I purchased a property in Gainesville, FL through one his providers. It was under an SDIRA. This was back in 2015/2016. I still own the property.

There was also a flip opportunity through another one of his connections (which he has now disavowed) that didn't do so well. The guy disappeared and did not return any calls. I had to get a lawyer involved and I eventually got most of my principal back. 

I've been to a few of his meetups where he brings in other providers to present their RE markets. 

He's a little goofy and he tends to overemphasize moving money away from stocks and put it all into real estate. But talking to him one on one he does have a passion for RE.