All Forum Posts by: Art Webb
Art Webb has started 15 posts and replied 47 times.
Post: Do I sell it all and call it a day??
- Posts 50
- Votes 7
Quote from @Edward Branagan:
I have a 14 unit Apartment building under contract per $1,800,000.The property is in Benson, NC. I’m wholesaling $1,900,000 the closing date is July 14, 2025
Curious, what kind of real estate commission and closing costs are you paying for that $100K difference ?
Quote from @Dylan Brown:
@Art Webb The IRS requires that the name and TIN on a W-9 reflect the actual owner of the income for tax purposes. In the case of a single-member LLC owned by a self-directed IRA, the IRS considers the IRA (a trust) to be the owner - not the individual, and not the LLC.
The W-9 instructions and Form SS-4 guidance indicate that IRA trusts should obtain their own EIN, and that using your personal SSN could result in the income being reported as taxable to you personally. We do not want that.
The custodian's refusal to share its EIN does not shift the reporting obligation to the individual investor. Using the LLC's EIN is also problematic if the LLC is disregarded, because it doesn't reflect the proper taxpayer.
Generally, the approach many tax professionals recommend is to apply for an EIN for the IRA trust and use that EIN on Form W-9, listing the IRA as the payee. It's a nuanced area, so consulting your IRA custodian or tax advisor is always the best next step.
When you said:
"I did receive EIN for SDIRA with no instructions"
I am curious if you could expand on that. It is possible this is the EIN you should be using.
Quote from @Chris Seveney:
Quote from @Art Webb:
I'm getting conflicting advice on how to fill out my W9 for my SDIRA in which the bank custodian refuses to provide their EIN for the form. Many say not to use personal SSN or SDIRA LLC EIN. This is a single member LLC owned by the IRA. Some have said to check Other in box 3a and put in "SDIRA" and "Bank EIN withheld by bank custodian" and leave both number boxes empty. Appreciate best answer by a tax CPA if possible. Thanks all !
I know you never use your SS #, but when you set this up did you not get instructions. Who is your bank custodian?
Quote from @Ned Carey:
@Art Webb I am not a CPA but you are the beneficial owner of the IRA. If there is ever a tax audit it falls back to you. So it seems appropriate that you would use your SS# for setting up the SDIRA. The LLC owned by the IRA can get it's own EIN number. It is easy to apply online. However since the LLC is a single member with you as Benefield owner then W_( forms say to use the owner of the LLCs tax ID number. Again that is you.
Who says not to use your own SS# and why? I think that is suspect advice by paranoid people. Since this is for your SDIRA why don't you ask the custodian what is expected?
@Michael Plaks can you help?
Most tax CPA’s agree not to use personal SSN as any SDIRA income is regarded as personal income by the IRS which is taxable which as a SDIRA holder you want to avoid.
Quote from @Dmitriy Fomichenko:
The proper way to fill out the W9 form is to enter the name of your IRA in line 1. Enter the name of the LLC in line 2. Select "Other" and enter "IRA Account" in 3. Use the exempt code 1 on line 4. Enter EIN of the custodian in Part 1. DO NOT ENTER YOUR SSN!!!
I'm getting conflicting advice on how to fill out my W9 for my SDIRA in which the bank custodian refuses to provide their EIN for the form. Many say not to use personal SSN or SDIRA LLC EIN. This is a single member LLC owned by the IRA. Some have said to check Other in box 3a and put in "SDIRA" and "Bank EIN withheld by bank custodian" and leave both number boxes empty. Appreciate best answer by a tax CPA if possible. Thanks all !
Post: Best Business Lines of Credit
- Posts 50
- Votes 7
Private money lending.
Post: Loan product for self storage and metal building with NO INCOME?
- Posts 50
- Votes 7
Mike, I work with various private money lenders that might be able to help. DM me. Do you have a business plan of annual projected revenue and expenses before debt cost ? Do you have a survey of number of competitors and pricing within 5 miles ? Do you know average income of families within 5 miles of your storage location.
Post: $75k Cash-Out ReFi Needed - are there any W2 alternatives? Great credit and income!
- Posts 50
- Votes 7
Can you add some more details ? What is amount needed ? How many months/years ? Will adding a 1st lien be satisfactory ? Current rent vs projected rent ? Current monthly taxes, insurance, and HOA.. This will assist any potential private money lender of your needs.
Post: Best Business Lines of Credit
- Posts 50
- Votes 7
Which banks offer the best/highest lines of credit to new businesses ? Pls add any special features or terms that your favorite offers. Appreciate all suggestions.