All Forum Posts by: Cameron Skinner

@Jackie P.  I would suggest you see if you qualify for a solo 401k or structure your business so you can qualify next year then roll you sdira into your solo 401k and be your own trustee and you don't need a custodian, plus the solo 401k is much more flexible and fewer compliance cost and reporting requirements than the sdira. 

Hope this helps,

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it is my understanding that these type expenses are not deductible in self directed retirement accounts.  You must treat somewhat like a third party 401k if you traveld to Atlanta to check out the coca-cola company head quarters before you invested in the coca cola company in your 401k and then went to thier annual meetings to make sure your investment was still sound, none of this travel would be deductible.  Your only allowed to passively invest in a retirement account if you start actively participating you may become subject Unrelated Business Income Tax.

Hope this helps,

Good luck

@Patrick Plummer in a former life I practiced in US Tax court, I strongly suggest if you qualify for the solo 401k go that route, and roll your ira into the solo 401k it is much more flexible in real estate transactions, and the compliance cost and reporting requirements are much less.  The SDIRA is a dinosaur compared to the solo401k.  The SDIRA have just been around longer giving them more popularity.  Go to mysolo401k.net they have lots of good info, also try 401kadm.com. Even if you currently don't qualify they can help you set up the structure of your business correctly to qualify next year.

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You can just evenly divide over the properties.

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As long as your a cash basis which almost everyone is, there are no accrued revenue issues until you get to 5 million in sales and even those issues usually only effect contracting companies holding their own inventory not flippers.  If you are substantially improving the property such as additions structural work you might get kicked over in this area, if just paint carpet and finishes you should be fine. In real property transactions irs requires you to "capitalize" your expenses meaning you can't take any improvements to the real property until you sell it. If you are running a flipping business you can take some expenses associated with the flip in 2015 called "current" expenses such as interest, property taxes, utilities, milage, ect. Bottom line get a good licensed tax professional in your area, not a franchise type, some one with some letters behind their name and preferably own investment real estate themselves. I promise they will save you more in taxes then you will pay in fees.

It can but gets a little tricky, if your a 100% owner just keep track of your miles take the the standard milage rate as an expense, the net effect is the same. 

Hope this helps, good luck

As @Brandon Hall pointed out the 179 is limited to your income in the business.  Most real estate investors get kicked into loses after depreciation, so you might not be able to use the deduction.  Also after you 179 a vehicle you can only take actual expenses, gas, oil changes ect. Further you may have to "recapture" a portion of the deduction when you sell the vehicle.  At 57.5 cents a mile the curent IRS rate this may be a better deal for you.

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in real property transactions irs requires you to "capitalize" your expenses meaning you can't take any improvements to the real property until you sell it.  If you are running a flipping business you can take some expenses associated with the flip in 2015 called "current" expenses such as interest, property taxes, and utilities, milage, ect.  Bottom line get a good licensed tax professional in your area, not a franchise type, some one with some letters behind their name and preferably own investment real estate themselves. I promise they will save you more in taxes then you will pay in fees.

You can defiantly trade options in a Roth but be careful setting up just a regular account. You can't trade on margin so all your trades have to be "covered" with either stock or cash. Most regular accounts will let you place trades that are not coverd even if you have not set up a margin account because if the market moves dramatically they can close out you position sometimes called being "stomped out." You don't need a sdira LLC to do this Optionshouse.com has Roth plans that conform to IRS rules and you can set up and do a direct rollover from your sdira, and later roll back in to your sidira. This way you don't inadvertently do a prohibited transaction. I'm not associated with Optionshouse I have just used them for years and they are one of the few that will allow you to max out the what irs allows doing spreads, strangles, and condors. Most others limit you to coverd calls on stock you already own. Lastly I know a lot of get rich quick types are pitching options and selling subscription services telling you what trade to put on, be carefull if you don't fully understand the trades your putting on and know the risk don't do it.

Hope this helps, Good Luck

@Philip Ross you may want to go to mysolo401k.net you may be able to roll your IRA into a solo 401k they are much easier to use in real estate transactions and you don't need a custodian as you can act as your own trustee of the plan.

Hope this helps,

Good luck