All Forum Posts by: Carl Fischer

@Jim Goebel

Those are some great questions regarding investments held and managed in a SDIRA. There are many attorneys who are well versed and experienced in SDIRA investing. Based on some of the specific situations you described, it would be a very good idea for you to find an attorney who can advise you on the best course of action for your investing. I believe they will be able to provide you with options to achieve what you are looking to do without having to take a distribution and be subject to tax and possibly early distribution penalties as well. I would be happy to connect and share some attorneys I have worked with over the years.

@David Vitarelli
Try Wayne Kerr -Kerr law associates-in philly and cherry hill. If he can’t help you he can give you someone who can. 

@Jameson Hedin
It depends on how much capital gains you have. Being married and living in the home 2 out of last 5 years gives you $500k deduction. You also have depreciation recapture tax for The years rented. Do yourself a favor and pay a cpa-it’s worth it and I am a frugal investor. 

@Tyler Harrel
The custodian, in normal times, will take a 20% withholding tax from the distributed amount and then federal tax and penalties (10%) will be assessed in the taxable year. The cares act waves penalties and allows 3years to pay taxes if you qualify. @Jase Machado and @micheal briscoe have good info. 

@Jonathan Doescher

Think about leaving the money in the Ira and doing the investing inside the Ira. Tax advantaged plans grow your net worth much quicker than outside in taxable accounts. However, I do both because real estate is an asset class I can control and understand. I love tax free rents!

@Tyler Baldwin

It is easy to come up with $400k when you sell properties for 40+ years especially if you use 1031 exchanges and expect that to be your nest egg.

When the government raises taxes they go where the money is. To the businesses that pay employees and hit every bodies pay check, to the real estate owners and jack up property taxes, to bank accounts and brokerage accounts and increase tax on gains.

Then they spend it on infrastructure, social programs, defense contracts, foreign aid, etc which is all fine until the contracts are jacked up in price and go to cronies for kickbacks to the politicians families. Thus the corruption and building of wealth on the people’s backs.

@Carliss Robinson

You may have some capability to use Covid distributions to move money from your 401k to your Ira over the next 3 years if you qualify for a covid distribution. 
@george blower makes some great points. I am biased towards Roth accounts so I think you should seriously consider conversion to a Roth. I believe in moving from “forever taxed” to “never taxed”.
I think it is a wash if you use the custodian or do a checkbook LLC -we have clients that do it both ways. Setup costs are more for the LLC, transaction processing time and costs are less for LLC, on going state filing fees are state dependent and the LLC may have tax filings that cost money. Ultimately it is your choice but you can start out with the custodian and later go to the LLC if circumstances and experience require it.

@James Mckinnon

Teal estate already has tax advantages-I don’t usually turn rental income from passive to earned income because it is an automatic 15% self employment tax. 
in addition, you are talking about asset protection. Most asset protection strategies are based on segregation of assets and you have an umbrella policy so you have a good start. Asset protection beyond that using trusts, LLCs, corporations and offshore entities is more than should be discussed here. 
Taxes and best Tax minimization strategies are best discussed with your cpa who knows your particulars-age, income, goals, family dynamics, investments, etc. 
Asset protection and tax strategies should be integrated. 

@Edward Alcantar

Interesting question- most CPAs are very conservative. However, Some do invest in Realestate. 
invest the $100k in your highest ROI and safest asset class.

@Jonathan B.
Yes A land trust can have multiple beneficiaries.