IRA Investments in Unlisted Companies?

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Subject Author Date IRA Investments in Unlisted Companies? W 07-28-2009  Re: IRA Investments in Unlisted Companies? Arthur Kamlet 07-28-2009  Re: IRA Investments in Unlisted Companies? Benjamin Yazersky CPA 07-30-2009  Re: IRA Investments in Unlisted Companies? removeps-groups@yahoo.com 08-26-2009  Re: IRA Investments in Unlisted Companies? Alan 08-26-2009  Re: IRA Investments in Unlisted Companies? W 08-28-2009  Re: IRA Investments in Unlisted Companies? Alan 08-28-2009  Re: IRA Investments in Unlisted Companies? W 08-28-2009  Re: IRA Investments in Unlisted Companies? Bill Brown 08-29-2009  Re: IRA Investments in Unlisted Companies? W 08-30-2009  Re: IRA Investments in Unlisted Companies? Bill Brown 08-30-2009
Posted by W on July 28, 2009, 1:35 pm Please log in for more thread options What limitations are there in an IRA on the kinds of investments you can make in unlisted securities? For example, can an IRA invest in a partnership or trust that does not trade on any exchange? If that is even allowed, how does one document the investment to the IRS' satisfaction? -- W -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Arthur Kamlet on July 28, 2009, 1:49 pm Please log in for more thread options >What limitations are there in an IRA on the kinds of investments you can >make in unlisted securities? For example, can an IRA invest in a >partnership or trust that does not trade on any exchange? If that is even >allowed, how does one document the investment to the IRS' satisfaction? A good place to start your research is page 45 of http://www.irs.gov/pub/irs-pdf/p590.pdf Nothing stops you from, in general, having your IRA invested in closely-held stock so long as you're not the one holding it, and you do not violate related party rules. -- ArtKamlet at a o l dot c o m Columbus OH K2PZH -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Benjamin Yazersky CPA on July 30, 2009, 9:27 am Please log in for more thread options >>What limitations are there in an IRA on the kinds of investments you can >>make in unlisted securities? For example, can an IRA invest in a >>partnership or trust that does not trade on any exchange? If that is >>even >>allowed, how does one document the investment to the IRS' satisfaction? > > > A good place to start your research is page 45 of > http://www.irs.gov/pub/irs-pdf/p590.pdf > > > Nothing stops you from, in general, having your IRA invested > in closely-held stock so long as you're not the one holding > it, and you do not violate related party rules. > -- > > ArtKamlet at a o l dot c o m Columbus OH K2PZH > > -- there may also be limitations imposed by the IRA trustee ___________________________________ <<< Benjamin Yazersky, CPA [NJ & NY] >>> -----> real address on hobokeni or hobokenx <----- "This written advice was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer." (The foregoing legend has been affixed pursuant to U.S. Treasury Regulations governing tax practice.) The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any computer. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by removeps-groups@yahoo.com on August 26, 2009, 12:53 pm Please log in for more thread options On Jul 28, 10:49 am, kam...@panix.com (Arthur Kamlet) wrote: > A good place to start your research is page 45 of http://www.irs.gov/pub/irs-pdf/p590.pdf > > Nothing stops you from, in general, having your IRA invested > in closely-held stock so long as you're not the one holding > it, and you do not violate related party rules. I read page 45. What does "Nothing stops you from ... so long as you're not the one holding it". So who is holding it? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on August 26, 2009, 3:01 pm Please log in for more thread options W wrote: > What limitations are there in an IRA on the kinds of investments you can > make in unlisted securities? For example, can an IRA invest in a > partnership or trust that does not trade on any exchange? Yes as long as you avoid the self-dealing rules that are administered by the IRS & Dept. of Labor. E.g., if you buy shares in an unlisted company in which you or your spouse or lineal descendants are officers or have a controlling equity position, you are self-dealing. If you buy the private stock from a relative you are self-dealing. If you own the private stock and sell to the IRA you are self-dealing. As someone else has said, you would need to find a trustee willing to manage these assets. Most trustees will not. When you find a trustee be prepared for big fees. Every year the trustee must report to the IRS the value of your IRA. Putting a value on private stock or investments in entities without a readily ascertainable value requires expertise that does not come cheap. If that is even > allowed, how does one document the investment to the IRS' satisfaction? > The trustee documents the investment. See above. Out of my old papers I found a Forbes article from 2004 on this issue. It is still available online at: http://www.forbes.com/forbes/2004/1004/126.html In addition any decent search engine will find lots of hits if you search for "IRA self-dealing". -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Investments in Canada how to report to IRS March 13, 2008, 2:00 pm Q: Can two companies pay for the same education December 16, 2006, 8:58 pm Useful life for long haul trucking companies January 16, 2007, 7:59 pm Class Action Settlement - St. Paul Companies July 13, 2007, 5:18 am