Take Control of YOUR Retirement with Check Book IRA

Take Control of YOUR Retirement with Check Book IRA

It is started, created and owned entirely by your IRA. An LLC that is designed specifically for an IRA, that respects IRS and Department of Labor codes governing IRAs. The legality of an IRA owning an LLC was affirmed in the case Swanson vs. The Commissioner in 1996. In fact the case for the IRS was deemed so weak that the Tax Court forced the IRS to pay the $50,000 court costs incurred by the IRA owners.Please note that an IRA owned LLC is very different than a regular LLC. One of the lessons learned from the Swanson case was the LLC must contain very specific language that meets all IRA codes and requirements, and that satisfies the Department of Labor (DOL) and all rules must be strictly followed.If the LLC is improperly drafted, the entire LLC IRA may be disqualified and taxed. Needless to say, you do not want this to happen! Not to worry, we will handle this transaction from start to finish to make sure it is done according to all the rules and guidelines. WHY AN LLCAn LLC (Limited Liability Company) is a business entity that is a cross between a corporation and a partnership The LLC gives the liability protection of a corporation, that is to say, even if you own all of the LLC, you will not be liable for the LLC’s debts. At the same time it can be taxed as a partnership. This is favorable as the LLC itself will not pay any taxes, rather, it will be the owner’s of the LLC that pay the taxes. The owner’s tax bill will be determined as if they were the ones who earned the money, NOT the LLC.In short, an LLC is a separate legal entity whose tax liability passes through to the owners of the LLC even though the funds might, at the manager’s discretion, remain in the LLC. In this case the sole owner of the LLC will be your IRA and you or whomever you appoint are the Manager. As a result of this strategy no taxes will be owed on the passive profits generated in the LLC, using your Check Book IRA, unless you elect a distribution from the plan or if you use leverage in buying real estate.