What are some types and examples of Prohibited Transactions and / or Self-Dealing Transactions?
• Self dealing with a family member (having your IRA purchase a home from you father). • Self dealing with yourself (having your IRA purchase a home from yourself). • Personal use of IRA property (buying a rental vacation home with IRA money and then staying in the home when on vacation). • Receiving personal benefit from your IRA (paying yourself for work that you do on the property such as repairing the roof).
· Self dealing with a family member (having your IRA purchase a home from you father). · Self dealing with yourself (having your IRA purchase a home from yourself). · Personal use of IRA property (buying a rental vacation home with IRA money and then staying in the home when on vacation). · Receiving personal benefit from your IRA (paying yourself for work that you do on the property such as repairing the roof).
You can’t purchase a home from your daughter or purchase a property from yourself that you already own. You can only invest in new properties and purchase properties from an individual who is not considered a disqualified person. A disqualified person is a person who is a direct descendant. You purchase a vacation home, hunting property or a golf course as an investment for your IRA but you yourself cannot personally use it. All the purchases made by the IRA LLC MUST be for investment purposes only. You cannot perform maintenance on a property that your IRA owns and pay yourself for work that you do on the property such as repairing a leaking faucet.
