I have a good IRA money pile and I want to use that money to assist me on the purchase of a business. I know you can use IRA for other investments, including income producing real estate, so why not tranfering assets from stocks to ownership of a business? The asset would stay in my IRA account. What so you think? Where would the statutes be located so I can read them for myself. (I'll continue to look arounf the IRS site).
2007-06-13 02:51:48 · 8 answers · asked by Tom _ Red Sox fan 3 in Business & Finance ➔ Taxes ➔ United States
There is no restriction on purchasing a franchise, but it has to be done properly. There are companies that will assist you in the process.
Assets inside your IRA would be converted to cash. A C-corporation with you as sole stockholder would be established, and the C-corporation would own and operate the franchise.
This has been going on for a few years, and there are many advantages and disadvantages. Here is an article giving one example, and naming a couple of companies that can assist you in your idea:
http://www.startupjournal.com/columnists/franchiseinsight/20060601-bennett.html
2007-06-13 04:00:44 · answer #1 · answered by ninasgramma 7 · 0⤊ 3⤋
For official notice you should consult a tax attorney or perhaps a CPA but in the meantime I know they have information on this sort of thing at Franchise Gator. I will put the link in the source.
Best,
Jennifer
2007-06-13 06:21:41 · answer #2 · answered by Jennifer S 2 · 0⤊ 0⤋
I think you are looking for a self directed IRA. Do a search on self directed IRA's. I fould quite a bit of information on it. I'm not sure if this scenario would work. Are you going to be employed by the business? Then it may not work.
2007-06-13 03:59:14 · answer #3 · answered by Chaney Lake Girl 2 · 0⤊ 1⤋
you nevertheless ought to pay the earnings tax on the quantity withdrawn, you in elementary words can steer away from the ten% penalty on as a lot as $10,000 that you withdrew and used to purchase your first residing house. Use form 5329 to exhibit that you do not owe the penalty for early withdrawal.
2016-10-18 21:13:36 · answer #4 · answered by hafner 4 · 0⤊ 0⤋
I dont think so, they will consider it an early withdrawal so you will pay tax and pay a 10% penalty. I dont think you can have property/business in your IRA. Consult a tax attorney or CPA
2007-06-13 02:55:22 · answer #5 · answered by hirebookkeeper 6 · 2⤊ 1⤋
You will pay your regular income tax (figure about 30%) plus a 10% penalty for withdrawing it before you're of retirement age.
2007-06-13 05:04:43 · answer #6 · answered by chante 6 · 1⤊ 1⤋
Contact a tax attorney or a CPA, they can enlighten you on all of the legalities.
2007-06-13 02:55:23 · answer #7 · answered by Mary A 4 · 1⤊ 0⤋
Yes, but if you're under 59 you'll need to pay the penalty.
2007-06-13 12:08:51 · answer #8 · answered by jdkilp 7 · 0⤊ 0⤋