Rental property in an llc for liability protection

Reference no: EM13818792

Paul Tuttle has a business opportunity. He can buy a tract of improved real estate for $450,000, far less than the current market value, if he acts quickly. Unfortunately, Paul has limited liquidity. He does, however, have $1.2 Million in a self-directed IRA. Paul rode the stock market from its 2009 low to todayâs highs, and now thinks that equities are overpriced. The real property is rented under long-term leases, and generates approximately $36,000 per year in pre-tax profits. Can Paul direct his IRA to acquire the real property? If so, may the IRA collect the rental profits the way it collects interest and dividends from the stock portfolio? If Paul wants to hold the rental property in an LLC for liability protection, can the IRA be the sole member of an LLC?

Reference no: EM13818792

Questions Cloud

Explain what a system bus is and why it is needed : Explain what a system bus is and why it is needed. Summarize the use of Boolean operators in computer-based calculations. Categorize the various types of memory and storage.

Key strategic connections availed by the e-business : As a team, you will draw on your e-marketing expertise to compose a presentation analyzing the following 4 key strategic connections availed by the e-business's health institute Web site portal: Business-to-business customer exchanges among the e-b..

Kant''s version of deontology : Evaluate the full Board of Public Accountancy's decision using the ethical decision making model and an ethical theory other than Utility Theory, Kant's version of Deontology, or the theory you used on the first ethical problem.

Income tax on the winnings : The agreement provided that Mock and Tuhi owned the ticket in equal shares. Mock cashed in the ticket, and gave $500,000 to Tuhi. Who owes income tax on the winnings? Did Mock make a gift to Tuhi?

Rental property in an llc for liability protection : Can Paul direct his IRA to acquire the real property? If so, may the IRA collect the rental profits the way it collects interest and dividends from the stock portfolio? If Paul wants to hold the rental property in an LLC for liability protection, ..

Compare the various types of human memory and their impact : Compare the various types of human memory and their impact on the human-computer interface. Describe the potential outcomes of not using consistency in the human-computer interface.

Explain the design approach and rationale : Explain the design approach and rationale

Statement based on concepts from the textbook : Prepare a well-reasoned analysis of the similarities and differences of the two organizations based on the mission statement. Discuss the quality of each mission statement based on concepts from the textbook.

Explain why ethics are needed in an organization : Explain why ethics are needed in an organization and how ethics are integrated into an organization to achieve its direction and goals. What effect does the application of these ethics have on individuals, organizations, and society?

User Account

All Pages