All Forum Posts by: Dawn Hall

I opened an SDIRA last November and bought a foreclosure property in December. I had a few minor repairs made ~$1000. We put it for sale or rent on Craigslist and actually sold it for a $14k profit. It took us until October to find another property. Same situation. Bought low. Put in about $1500 in repairs. Put it for lease or sale on Craiglist and sold it this week for $13.5 k profit.

Am I flipping? Is this subject to UBiT? My accountant is not versed in the SD IRA and Inhave seen some opinions that vary...one says you need to flip 5 properties, another says you have to hold for a year.

Opinions?

Not much...

Holy crap! Selling my personal house and the day before closing our sellers backed out of the deal! Total breach of contract! We had accepted their contingent offer in May and then got an offer from another buyer in June The first buyer removed the contingency (to sell thei house). So we get to the last day and I guess they got cold feet because their house wasn't showing much and they reneged. Thankfully, my agent called the other buyer's agent and we got another contract today, he had not bought another house....but now we have to wait another 30 days!

My 12 year old is buying a tax lien!

Are the following items considered capital items to depreciate or expense for tax purposes?

- Hot Water Heater
- Blown-In Insulation in Attic
- A New Front Door

We also bought a lawn mower and tiled one of our apartments, which I presumed are Capital depreciable items.

Thanks.

I converted my IRA into an LLC SDIRA and today I bought a house at the Sheriff Sale. I thought the house was vacant, but it turns out it is not. I thought it might be squatters, but it turns out it was the prior owner. I went over there and posted notice to vacate signs after filing a Writ of Possession. When I came back later, the man was moving out. We chatted for a while and it turns out he is a reasonable guy who has fallen on hard times. He filled me in on some of the details of the house and he is moving out peaceably. The house will need some work, but I'm planning to offer it as a rental. It's a few blocks from the University in my area and should bring in $800-850 a month....not bad for a $50 K investment. I got it for about $15K under appraisal....the banks aren't letting much go here at the auctions these days.

Thanks! Do I open that account up in the name of the LLC too?

I have an SDIRA LLC with a business checking account and am about to purchase a rental property.

Do I keep the Security Deposits in the SDIRA checking account or do they need to be kept separately?

I'm considering marketing it as a lease/purchase. If I do that instead of leasing it, what about the $$ that would go toward the renters down payment? Would that be held in my SDIRA LLC checking account or do I put that and the downpayment in another account (i.e. escrow account)?

I intend to use it as a rental. I want to buy it out right. If I finance it, I'd have to pay UDFI.