Alex M.
Help! Forming LLC taxed as S-Corp
31 December 2017 | 18 replies
Not a CPA** An S Corp is only beneficial if you actively participate in real estate, something around +500 hrs/yr.
Victor Cooke
What systems to develop for "Newbie"
30 December 2017 | 5 replies
That number sequence would make Einstein proud.
Conner Parsons
Solo 401k Plans v Self Directed IRAs
10 January 2018 | 12 replies
@Connor ParsonsTo learn about what is considered self-employment activity for participating in a solo 401k plan, please see the following. https://www.irs.gov/businesses/small-businesses-se...Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2017, the solo 401k contribution limit is $54,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)
Henri Meli
Does non-recourse in an IRA require a W-2
31 December 2017 | 6 replies
@Henri MeliA non-recourse loan does not look at the IRA participants w-2 nor credit report.
Vince DeCrow
2018 Best Commercial Real Estate Markets to Invest In: Part I
4 January 2018 | 36 replies
I'm glad you have confidence in these markets too and that you are participating in Fund III!
Carol C.
Getting started--what was your first property in Bergen?
5 January 2018 | 17 replies
The best thing you can do is talk to a participating lending officer.
Rob Bianco
First Time Philly Investor
17 January 2018 | 4 replies
Okay, so what areas / type of investing in the area are you participating in?
Nicholas Kangos
Closed my First Deal
5 January 2018 | 4 replies
I’m proud to announce I closed my first deal on 12/21/2017!
Travis White
LifeStyles Unlimited - Opinions/experiences Requested
11 April 2019 | 4 replies
My Dad-inlaw is a new participant in the Preferred program and I'm waiting/excited to see what sort of opportunities/returns are available to him.
Account Closed
2 Self Directed IRA Scenarios - what are your thoughts?
7 January 2018 | 12 replies
To learn more about the 60 day rollover rule, see the following:https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions