All Forum Posts by: Carl Fischer

@Mark Leclair

If it works that way and you don’t pay taxes on the flip I want to know how to do it. Taking the loan from the taxed money life insurance premium payments tax free I understand that. Loans are not taxed unless you don’t pay them back. 
Please post how it works for you thank you. 

@Adam Zach

Launching rockets is more fun than real estate but not more profitable😀

@Anja Brey

Just because the note is in default doesn’t mean you get it. Your Ira has to foreclose and most likely have an auction for the amount owed. If it doesn't bring enough to satisfy your note then your Ira will become the owner. 
Other IRAs can lend your Ira the money with a non recourse loan, or another private lender, Or NASB.com or Ira lending.com or as @Brian Eastman noted sell some equity or make a deal with a contractor. The covid distribution as explained by Brian May also help. 
You have a lot of options. You can sell part of the note as well. 
I don’t understand how your employer won’t allow an outside Ira even if you work in the financial field. You need to show it isn’t competition to your employers company. 

@Gayatri Martin

The banks asks questions of everyone to minimize terrorist funding and anti money laundry scams. 
Many individuals use the Ira Custodian/administrator and don't have the cost of the LLC formation, annual tax returns, state annual fees etc but trade them for custodian/administration fees and time. Some custodians and administrators have referral programs that give you credit for client referrals that can make your fees disappear and you don't need to incur any LLC costs or banking fees as another option.
Buying gold has taxes on the increase in value that you will pay.  Generally the money you save in taxes significantly out weighs the fees you pay for administration in either method you choose. The banks and governments are going to “fee” us to death to pay back all the lost revenue from covid and to payback the money given out.
I still like the Roth for the tax free income it provides for life. Remember the more you earn the less percentage the fees are. If you earn a hundred thousand $100k and it costs you $1000/year and you save $30k/year in Fed taxes and another $6k in state taxes seems like a good trade off. When you make more and more that fixed cost goes down percentage wise. 
Search for online banks -for one that meets your needs. Banking by phone also reduces some of the costs. Or abandon the LLC and use the custodian administrator. The SD 401k usually has similar costs and issues. 
The maximum funded life insurance policy has even more costs associated with running it-but what it saves in taxes should outweigh the cost.  You are smart to do your “ due diligence” and look at costs but also consider savings and your earning power. Keep your eye on the donut and not the hole. Good luck. 

@Christian D.

1 account- multiple classes and multiple bank accounts. Each property gets its own class. Check out @mike @Mike Butlerundefined he has a great system and book. It’s worth adopting the system from his years of experience. Or hire a bookkeeper or your cpa to help you set it up. 

@Jamie Rost. I wanted to further clarify my initial response. Number 2 would be possible if the property was owned in the IRAs name. NOT if the down payment was used for a purchase in your own name. Apologies for any confusion this may have caused. If you are looking to get financing for a property owned by the IRA, you are correct in the fact that it would have to be a non-recourse loan. However, you should be aware that, usually IRAs are tax-sheltered accounts, but in some instances do pay taxes. One of those instances is when debt-financing is used in a purchase of a property by an IRA. This tax is called UDFI, or Unrelated Debt-Financed Income, and it is best to talk over with your tax professional before going this route. For further clarification, please feel free to connect with me.

Hello @Jamie Rost. You're on the right track in doing your research when it comes to self-directing your IRA. A huge factor in managing your self-directed investments is making sure you perform the proper due diligence. In terms of your options above, number 2 would not be allowed in your IRA because you cannot use IRA money for only your down payment on a property. This would be considered a distribution.

As @Andrea Weule mentioned, what you choose to self-direct your $90K in is up to a number of factors. Things you should consider include what stage of life you're in (far from retirement, nearing retirement, or retired), risk tolerance, diversification vs. focus, knowledge level about the asset, time available/required to manage the investment (tax liens vs. note fund), and more. What you are most comfortable with is always where you should start. Lending is obviously more hands off, while purchasing a property in your IRA may require more interaction for things like bill pay, hiring contractors, and rental income. Choosing the right custodian that will help you facilitate your transactions within IRS regulations. BiggerPockets provides a list of self-directed IRA custodians for you to reference on this site. You can check out that list here. Things to consider when choosing a SDIRA custodian are customer service, knowledge, experience, and processing speeds, as they will be integral to ensuring that the investments you have chosen to self-direct are facilitated efficiently. Many investors have found success through investing in alternative assets with their self-directed IRA, including in real estate. You can own residential, commercial, raw or improved land in your IRA.  If you have any additional questions, I would be happy to connect.

@Steven Steele

It sounds to me like you have been affected by Covid. That would possibly allow you to withdrawal your $50k from your 401k, without resigning, and when things get better for you put it back or put it into your new solo 401k as @Dmitriy Fomichenko explained.

@Ed Sanchez

A lot of questions you have. It might be easier to have a conversation. Feel free to call me or pm me with some times you are available and a phone number. 

Look at 1040 publication tax tables. They are graduated the first 12k is tax free, then it starts going up incrementally until you reach the max   
take your tax return and put the tax you pay divided by the amount you made and that is your tax rate. Use turbo tax or ask your accountant.