How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 3103
Experience:  Providing Financial & Tax advice since 1986
Type Your Finance Question Here...
Lane is online now
A new question is answered every 9 seconds

A new question: Coudl you please provide a bit more information

Resolved Question:

A new question: Coudl you please provide a bit more information on"disqualified persons and prohibited transactions"?
I am a small business owner in California, my wife works for high tech. We plan to use IRA money (after talking to custidioan) to buy REOS single family for rental.
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

NPVAdvisor :

Sure switched to Q and A after you left, so it should be at the end of the other question, but here ya go ...

NPVAdvisor :

Disqualified persons are …


Member of your family (spouse, ancestor, lineal descendant and any spouse of a lineal descendant)


Any party that exercises discretionary authority or control in managing your IRA or its assets


Any party that charges to provide investment advice on the IRA (or has authority or resp. to charge)


Any party administering your IRA (Bank, Trust Company, Brokerage Firm)


Any entity in which you own at least 50% stake


 

NPVAdvisor :

and prohibited transactions are any of the following done with or by them or you:

NPVAdvisor :

Prohibited transactions:



  1. Borrowing Money from your IRA plan

  2. Selling Property to your IRA plan

  3. Paying unreasonable compensation for Management of your Plan

  4. Using the IRA as a security for a loan

  5. Buying property for personal use

NPVAdvisor :

This is mostly covered by an area of the law called self dealing

NPVAdvisor :

looks like you're typing ... I'm here

Customer:

Great thanks. A quick question. do you think, if someone uses such advanced tools (like Custodian managed IRA for real estate), and already has 3 rentals and small business. IRA is more likely to audit such investor for deductions, etc., or you think, it wouldn't a matter? Just wanted to check if IRA questions more to such advanced investors.

NPVAdvisor :

No, if you use a custodian that does that, you probably lower the risk of an audit...it's all very clean, theier understanding what is and isn't allowed and whhat could be construed as a prohibitd transaction, they just won't do

NPVAdvisor :

You WILL pay a little more for the custodian, that just using a bank or brokerage ... maybe 40/yr ... but they are lowering your risk

Customer:

Perfect. That great, thanks much.

Customer:

Do you know any other custodian other than pensco also? or I can check online.

NPVAdvisor :

They do all the IRS reporting, and continually audit as all the transactions go through them (as all transactions go through all custodians) ... it's just that say, if you have a check written to yourself from the IRS they'd catch that and tell you a better way to handle it, for example (OR be sure that the reporting was done right, so it's not penalized)

NPVAdvisor :

Hang on

NPVAdvisor :

http://www.accuplan.net/

NPVAdvisor :

http://www.trustetc.com/landing/ira-success-kit/success-kit.php?etcls=PPC&gclid=COiK7byKyLQCFQeDnQodXwMACQ

Customer:

thanks much for the great service. will be in touch in future also. Have a great Happy New Year.

Lane, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 3103
Experience: Providing Financial & Tax advice since 1986
Lane and other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1885
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1885
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    1853
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 8
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    CPA, CMA, CFE

    Satisfied Customers:

    1051
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    836
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    394
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    313
    NASD Licensed Rep, 1997-2001, Business Attorney