Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
Hi: I'm looking for some advice. We'd like to sell my wife's house to an LLC partnership where a number of different entities invest. Some of the entities will be my roth SDIRA, some of my personal cash, a couple of partners, and my wife keeping a part equity share.
Does anyone know if this is 'legal'?
I know it is kind of confusing, but it will look something like this:
Wife sells to LLC------------------> Partnership LLC
Wife receives SOME cash to balance out the 'equity' shares.
Partnership LLC is composed of the following, all equal partners:
AG SD Roth Cash
AG Cash
Partner 1 Cash
Partner 2 Cash
Wife ~ Equity share
Would this be considered a 'prohibited' transaction for my SD-IRA?
Your wife is a disqualified party to your IRA. As such, there can be no transactions or any direct or indirect benefit between the IRA and your wife in either direction. What you seek is not possible within the rules.
@Brian Eastman. Thanks for the info. I was TRYING to think outside the 'box' a little bit. I was thinking that since the SD IRA was 'nested' in an LLC where there were more investors, that it might fly. LOL.