All Forum Posts by: Jayman Petel

I got my questions re. SD IRA taxation answered. It appears that it can be straightforward processing based on the type of underlying investment.

The tax rate can be pretty high depending on the type of UBIT liability (longterm vs shorterm).

Another big concern I had was about the actual payment of taxes under UBIT/UDFI. In other words where do the funds come from?

The payment has to come from your IRA and IS NOT considered a distribution. In other words you will not be charged a penalty + tax for early withdrawal of IRA funds that are used to pay UBIT taxes.

I am not expert or professional in this matter. Just providing info here in case it helps someone..

I got my questions re. SD IRA taxation answered. It appears that it can be straightforward processing based on the type of underlying investment.

The tax rate can be pretty high depending on the type of UBIT liability (longterm vs shorterm).

Another big concern I had was about the actual payment of taxes under UBIT/UDFI. In other words where do the funds come from?

The payment has to come from your IRA and IS NOT considered a distribution. In other words you will not be charged a penalty + tax for early withdrawal of IRA funds that are used to pay UBIT taxes.

I am not expert or professional in this matter. Just providing info here in case it helps someone..

I got my questions re. SD IRA taxation answered. It appears that it can be straightforward processing based on the type of underlying investment.

The tax rate can be pretty high depending on the type of UBIT liability (longterm vs shorterm).

Another big concern I had was about the actual payment of taxes under UBIT/UDFI. In other words where do the funds come from?

The payment has to come from your IRA and IS NOT considered a distribution. In other words you will not be charged a penalty + tax for early withdrawal of IRA funds that are used to pay UBIT taxes.

I am not expert or professional in this matter. Just providing info here in case it helps someone..

Does anyone have an experiecne with the above recommended CPAs in the Dallas area in regards to self directed IRAs? I am looking for an expert CPA who also specialized in RE taxation and specifically for SD IRAs for guidance and tax planning/filing help in the Dallas area.

Thanks

Thanks Brian. Just saw your reply above. I posted the below text on the other thread as well. Repeating here:

The PE firm is using member investments as below and borrowing money as well for purchasing investment properties as an LLC.

Here is the basic offering structure from the PE and am wondering how it might be taxed for a SD IRA:

--------

Class A Membership Units

Minimum Class A Units Offered: 40

Maximum Class A Units Offered: 100

Price Per Class A Unit: $50,000

Minimum Purchase Per Investor: 1 Class A Units

Steve, Thanks for replying to my post on the other forum. Here is the basic offering structure from the PE and am wondering how it might be taxed for a SD IRA:

--------

Class A Membership Units

Minimum Class A Units Offered: 40

Maximum Class A Units Offered: 100

Price Per Class A Unit: $50,000

Minimum Purchase Per Investor: 1 Class A Units

Hi,

Wanted to know how taxation works on an SD IRA that is invested in a real estate related private equity firm that buys properties, rents and sells the property or properties occasionally. It seem the PE firm also has quaterly returns.

So how does the taxation work on this? I have read somewhat about UBIT and UDFI. But would like to know some specifics from folks who are experts or have done this in the past.

Thanks in advance.

It does have a motion sensor. However there is a potential for injury because it is a heavy gate. There is a another walk through gate next to the sliding gate but maybe fire trucks might get obstructed if they want to  drive their truck right up to the garage.

Good idea on checking with insurance company on this. I could take the gate off or disable it and cover a portion with a stationary fence as a precaution.

Or I could put a clause in the rental agreement to protect myself from any liability.

Hi, I have a property with an electric sliding gate on the driveway in the back which leads to the garage. Adding the sliding gate and removing one side of the fence has increased the backyard space significantly but I have been wondering whether the sliding gate is a liabitlity. Please let me know your thoughts.

Thanks

I am in a very similar situation. So a simple search brought me to this thread and am very thankful for this info. Will keep monitoring these forums. But more and more it seems that I should also sell and reinvest the proceeds in potentially higher ROI investment vehicles.

Best