Updated 2 months ago on .
Most recent reply
presented by
Looking to wholesale in my Self Directed IRA LLC
I am looking to possibly wholesaling empty townhome lots in St Cloud, FL with my SD IRA LLC. Has anyone had any experience with this? Do you need to apply for any permits? Has it triggered any UBIT for you? Any insight would be greatly appreciated, thank you so much in advance!
Most Popular Reply
#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
- 6,546
- Votes |
- 5,471
- Posts
#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
Just adding another tax professional's confirmation of concerns raised by @Brett Synicky and my other colleagues on the thread under your identical question on the Wholesaling forum.
https://www.biggerpockets.com/forums/93/topics/1277653-looki...
The short version is that if you plan to do wholesaling yourself within your own SDIRA, it will be a prohibited transaction and result in disqualifying your SDIRA and hefty penalties.
This idea can only work in a very rare scenario when you essentially lend your SDIRA money for someone else's wholesaling business. Not when you are working this business yourself and not when you are using proxies, either.