Self directed ira to buy currently owned properties

[Gina Lowe]

I'm wondering if there is a legal way to use a self directed ira to buy a PROPERTY I CURRENTLY OWN THROUGH A LLC? I could retire the mortgage if so.

[Brian Eastman]

@Franklin Romine

What you have recommended would not fly. In the event of an audit, the IRS would view that friend as a "straw buyer" and still see the underlying transaction as between the IRA and the IRA account holder. The entire IRA would be deemed distributed, taxable, and penalized as a result of such a prohibited transaction.