All Forum Posts by: Jack Brethauer

In case anyone comes across this thread, I overlooked the obvious answer: in an SD IRA, you're not allowed to perform any services yourself for your IRA as this is construed by the IRS in a manner that would invalidate the IRA's tax status and open you to significant tax penalties. So, you must hire a third party (e.g., attorney) and pay them from your IRA funds.  

Hi folks -  South Carolina (Greenville, Spartanburg, Columbia, etc) looks like a great market for buy-and-hold rentals but the property taxes are prohibitive for out of state investors.   By my research about 6% of assessed value for out of state investors, but <1% for in state.  

- Can anyone correct me if this is incorrect? 

- Are there any viable work-arounds? such as forming an LLC with an in-state partner, forming a single member LLC in SC, etc.

- How would this apply to general investing and investing via a self-directed IRA (SDIRA) LLC with checkbook control?

- Any other tips that might make this market more accessible? 

Thanks!

Thanks George.  Great post on set up process, too! 

Hi BP community - Has anyone done the legwork of establishing their own single member LLC for their self-directed IRA? My CPA/attorney can do it for me of course but wants $3500 to do it, which is typical for CA. I've used him one before for an LLC but realize there's a lot of boilerplate and window dressing in that cost (fancy certificates, embossed stamp, etc.). I'm trying to weigh not just the potential savings in dollars but the value of risk mitigation and having him in the loop since he also does my taxes and estate planning.