For those who used self-directed IRA to invest in real estate

[tenant13]

I'm about to purchase an investment property in Puerto Vallarta through the LLC owned by my SDIRA. It's a competitive market but also kind of perfect for managing hands off rentals (it's all rental condos and management companies) so doing it through SDIRA is logical. I don't really care about monthly income, This is to diversify my portfolio - I can't sit on a gigantic pile of tech stocks any longer and I already have enough of the "safe" investments like ETFs and bonds.

Anyway, the question is about prohibited transactions. As the LLC manager I'm the person signing all the paperwork which can be done remotely most of the time but at some point I will have to be present for closing. Can the travel expenses be covered by the SDIRA? And how would I go about it? Purchase flights and hotels using my personal credit cards and then reimburse myself from SDIRA (like with HSA)? Or use my LLC's debit card? I would prefer the first option but I'm not sure about the legality.

Secondly, has anyone used an ERISA advisor for their SDIRA and could recommend one? Perhaps I should invest in a professional consultation.

 

[hotwired]

If you can get John Hyre for an hours q and a, do so.

 

[wolf]

IMHO. Sounds overly complicated for IRA money. In the future, how would you handle RMD ?

 

[SVHoper]

I'm about to purchase an investment property in Puerto Vallarta through the LLC owned by my SDIRA. It's a competitive market but also kind of perfect for managing hands off rentals (it's all rental condos and management companies) so doing it through SDIRA is logical. I don't really care about monthly income, This is to diversify my portfolio - I can't sit on a gigantic pile of tech stocks any longer and I already have enough of the "safe" investments like ETFs and bonds.

Anyway, the question is about prohibited transactions. As the LLC manager I'm the person signing all the paperwork which can be done remotely most of the time but at some point I will have to be present for closing. Can the travel expenses be covered by the SDIRA? And how would I go about it? Purchase flights and hotels using my personal credit cards and then reimburse myself from SDIRA (like with HSA)? Or use my LLC's debit card? I would prefer the first option but I'm not sure about the legality.

Secondly, has anyone used an ERISA advisor for their SDIRA and could recommend one? Perhaps I should invest in a professional consultation.

 

[SVHoper]

I'd recommend Equity Trust if you want stronger guidance on self dealing, UBIT regulations etc.

No problems with IRA Trust Services and I'm confident they'd give you the correct advice, but in my small sample they are less diligent as to providing unsolicited guidance/demanding? you to do the right thing

 

[tenant13]

IMHO. Sounds overly complicated for IRA money. In the future, how would you handle RMD ?

Every year you need to report estimated value of your SDIRA holdings. Whether it’s real estate, teak plantation or crypto.

 

[jw72]

Every year you need to report estimated value of your SDIRA holdings. Whether it’s real estate, teak plantation or crypto.

My question is, the company I have the SDIRA with reports every year, but we have not updated the value in 10 years. We have not made any transactions with the property, just collected the rent. Is there a penalty for not reporting the higher value?