just offering my opinion.. warning ... lol... Andrew McNulty et al. v. Commissioner of Internal Revenue, judge Robert Goeke ruled that the physical storage in a safe at home constituted “unfettered control” of the investment and would thus be considered a taxable payout from the IRA. her ira being held up by a sole proprietorship LLC. Now if you are going to set up an LLC, it would be my advice to add a second person to it and make it an L-corp o C-corp... if you're going to have such an invaluable instrument such as an (ira) retirement or stock portfolio ran by it just my opinion. tax man cometh even in death .. 2 things that come regardless even when you die..lol like what the farth...
That makes perfect sense, to me, and protects the transfer of IRA Funds without penalty to the individual, within the time allowed, or in the alternative, 10% Fed W/H and end of year 1040 accountability. Self-direct IRA via non-accountability is not an IRA. It is a tax avoidance scheme, and even with a C or L. The safe thing to do is an SEP.
I've seen so many highly-deceptive pieces of advertising intended to mislead folks into buying unqualified assets with their IRA funds. Even when control would have been out of his hands, I had to talk my very excited boss out of buying classic US Gold coins about 10 years ago, when he got a bi-fold pamphlet from a very prominent television advertiser which correctly asserted both ASE & AGE were qualified for his IRA (if managed by them, outside his control). The advertiser very cleverly transitioned to classic US Gold coins in the second half of the bi-fold pamphlet, omitting the fact that they do not qualify for inclusion in the IRA, while leaving the same qualification implied by association with the prior-presented ASE / AGE. I can only imagine how many got duped into buying classic US Gold coins from that company, and will eventually be dinged by the IRS for it. Doubtless, this same sales tactic was employed to great success by other unethical marketers.
Our hobby, unfortunately, is simply replete with such stories over the past 40+ years that just I am personally aware. My old dealer friend who started in the 1940s told me similar scams were common in the 50s and 60s. Do to high dollar transactions, prevalence of cash, etc we have always attracted undesirable citizens into our hobby.
I can be forgiven for thinking you knew, since you commented that there is a problem with it. It is possible you have not read the IRS Regulations completely, though. The IRS website has the full explanation and Regulation. That will allow you to read in entirety, rather than reading a synopsis by me. I hope this helps. There is gold in that regulation, gold.
