All Forum Posts by: Todd Michael

In 2014 I created a single member LLC for the sole purpose of using to invest in crowdfunding opportunities. Since its a single member LLC and for tax purposes is classified as a sole proprietorship LLC, all revenue just passes through to my individual tax form. But, I've received a couple of 1090-INT's with my LLC's EIN (not my SSN) and am not sure where to report. Is it on my Schedule B with interest income earned by my SSN? Is it on the Schedule C, and if so, where? Other income? Seems like there I can't itemize the 1090-INT's.

I will say that I set this LLC as a way to just isolate this activity, but was a bad idea. It just overly complicates things for no benefit. But, what's done is done.

TIA for any help.

Todd M.

Thanks Scott... and if you expand to the Kansas side, let me know.

Hi all... what a wealth of info I've found here so far. I want to introduce myself... I'm in the Kansas City area (Kansas side - Johnson County)... work full time (for now)... and want to begin investing in SFH or raw land. Seems like raw land is tough though... you really need to know people to get good opportunities there, at least from my initial observations.

What I'm trying to do now is to put my plan in place. I've got my finances nearly ready to go. My next step is to look for property. I'm planning to call a real estate office and explain what I'm looking for, hope I get a good agent, and start visiting properties. Once I purchase a property, I then need to find a property manager. My first question to the BP community is, "Is anyone familiar with the Johnson County area enough to recommend a PM?".

Thanks for the help I've gotten thus far. I hope to be able to contribute back soon.

One more thought. The purchase of this property is not just me, but my brother and sister as well. The 3 of us. Would it work for my brother and sister to form a partnership that would own this property and my SDIRA invests in the partnership? Based on my understanding, my SDIRA can transact with a partnership in which I am not at least a 10% parnter and have no managerial responsibilities.

Todd

Well, I needed to decide what to do so I took the wise approach to not involve my SDIRA in this transaction. I could not ever really get an official answer from anyone I connected with, so that worried me. I found this nice chart on the IRS site...

http://www.irs.gov/irm/part4/35960002.html

I may not be reading it correctly, but under the "Trust or Estate (T)" part, it has a box that simply states Trustee of T. So, to me, that seems clear.

Thanks for taking the time to consider my dilemma and respond.

Todd

Matt... I appreciate your response as well. I first contacted my attorney who set up my Trust with the assumption that he would know this... but he responded that he can't advise on these kinds of matters. Finding an attorney who can answer this 10 second question is proving rather difficult.

Todd

Loren, you likely are correct on (H). My initial reading was that (H) was specific to a corporation or partnership, but it really applies to any entity. And, a trustee holds a position that could influence decisions pertaining to the Trust. My Mother is a trustee in name only, but that has no bearing on the legalities. Sure wish my uncle hadn't made her a trustee. I'll still post back what I learn from a tax attorney.

Todd

Hi Loren, thank you so much for your reply. I think I will need to consult with a Tax Attorney to confirm. I'm optimistic that the Trust will not be considered a disqualified person based on the IRS definition...

(5) any direct or indirect owner of 50% or more of any of the following:

• the combined voting power of all classes of stock entitled to vote, or the total value of shares of all classes of stock of a corporation that is an employer or employee organization described in (3) or (4);
• the capital interest or profits interest of a partnership that is an employer or employee organization described in (3) or (4); or
• the beneficial interest of a trust or unincorporated enterprise that is an employer or an employee organization described in (3) or (4);

The 3rd bullet references a Trust and it mentions the beneficial interest and not the trustees. But, you along with some other things I've read have raised enough doubt that I need to get professional confirmation. The penalty can be severe enough that I don't want to mess around. Once I get an official statement, I'll post back.

Thanks again.

Thank you in advance for taking the time to read my question.

My uncle passed away and left a trust. I would like to purchase some property from his trust using funds from my SDIRA. So my question is if that Trust is a disqualified person.

- The Trust has 2 trustees - 1) My Mother, 2) unrelated friend of my uncle

- The Trust has 3 beneficiaries - all charitable organizations

- My Mother is only a trustee and not a beneficiary.

My reading of the IRS rules of disqualified persons for a trust is that it pertains to who the beneficiaries are and not the trustees, but hoping to get some confirmation.

Thanks,