All Forum Posts by: Sharilyn Glover

If one owned a single member LLC within their Roth IRA, and that entity invested exclusively in real estate, tax liens and debt instruments, would it not be acceptable to simply incorporate "grammar school" like accounting (how much IN versus how much Out). Being that the LLC is owned by a tax exempt entity it seems illogical to maintain the books in accordance with traditional taxable entity rules. Why income and expenses in a traditional manner (cost basis, calculating capital gains, depreciation, and deductible versus non-deductible debits) when there are no capital gains taxes due and there is no depreciation deduction or recapture? It seems like the bookkeeping guideposts to use would simply be tracking income/gains and expenses. At the end of each period (month, quarter or year) are we not simply interested in knowing how the account value increased and or how cash flow improved? After all, why adhere to the rules for baseball if your playing ping pong? In as much as most LLC articles of organization state that the entity's books shall be maintained in accordance with generally accepted accounting standards, what are those standards for the Roth IRA owned, single member LLC's investing in real estate, tax liens and other debt instruments? I look forward to hearing from ya'll. Thanks!

Darron,  Thanks for the info. I would be interested in speaking to your friend in Alabama in regards to their real world experience with federal liens on tax sale properties. If at all possible, could you find out if your contact would be willing to discuss this with me?  Thanks!

Harry, Have you confirmed the titele? If not, it sounds like you and the "couple" who purchased their interest from the original owner via quit claim deed both own an undefined interest in the property. Neither of you can pass clear title without either buying out the other or via quieting the title and receiving a judgment  (default or otherwise) against the other party.

Will, I have a very similar situation in Mississippi. In Attorney Michael Pellegrino's book on New Jersey tax liens he states, other than federal tax liens "first in time, first in right" governs priority of a federal lien versus tax certificates. He goes on to say that if the federal government holds such an interest in the property a strict foreclosure is not permitted, and there must be a sheriff's sale at the end of the foreclosure process. Considering Pellegrino's statements I was wondering how your interaction with the SBA resolved. Please let me know. Would very much like to discuss with you.  Thanks!