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Updated about 1 month ago on . Most recent reply presented by

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Jon K.
  • Rental Property Investor
  • Perry Hall, MD
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Any issues investing in something through SDIRA and personal name at the same time?

Jon K.
  • Rental Property Investor
  • Perry Hall, MD
Posted

As the title says, I'm considering investing in the same debt fund using both personal funds and SDIRA funds. Provided I ensure I'm keeping capital segregated, signing subscription docs/contracts separately for each entity, and otherwise treating it like two completely separate investments by two completely separate entities are there any issues with doing such a thing?

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied
Quote from @Jon K.:

As the title says, I'm considering investing in the same debt fund using both personal funds and SDIRA funds. Provided I ensure I'm keeping capital segregated, signing subscription docs/contracts separately for each entity, and otherwise treating it like two completely separate investments by two completely separate entities are there any issues with doing such a thing?

As long as it is a passive hands-off investment, and one part of your investment is not contingent on the other, I see no issues.

Clarification: Contingency that I refer to would be, for example, when you cannot meet the  minimum investment requirement without combining your two sources of capital. Then there is potentially an argument about you drawing a personal benefit yada yada yada.
  • Michael Plaks
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