Updated almost 16 years ago on . Most recent reply
Calling all self directed IRA experts
i have a purchase agreement on a house that is scheduled to close in a couple of weeks. the contract lists my LLC as the buyer. However, I would like for my IRA to purchase the property instead. Can i just assign the contract to my IRA? or will that be a PT?
If it's a PT, how do i get around it?
Most Popular Reply
The original question has been answered correctly. It is a PT.
What you need to do is get the seller to agree to a substitution of buyer and then name your SDI as the buyer of record. Since you persaonlly are no longer responsible for the contract, received no financial personal gain for the substitution, you are now free from a PT.
There are many places to lean about SDI. Try going to http://www.trustetc.com and read up on their website.
Also, google self-directed IRA, prohibited transactions, and disqualified parties.
You may also refer to IRS publication 590 on http://www.irs.gov