Madison Trust Company Q&AAnswer
Jun 30, 2022 - 09:58 AM
In a Checkbook Control IRA LLC structure, the IRA owns the LLC, and the LLC would purchase the property. RMDs, or Required Minimum Distributions, generally need to be distributed from the IRA account directly, not from the LLC. In this case, you would need to send funds from the LLC to the Self Directed IRA Custodian to facilitate the transaction.
Alternatively, if preferred, RMDs can be taken from any IRA account that you have if there are funds available. If you have other questions about distributions, you can visit our Distributions FAQs page.
Depreciation does not reduce the value of the Real Estate in your Self Directed IRA. IRA asset values are based on the fair market value of the investment.
Madison Trust is a passive custodian and therefore, does not give legal, tax, or financial advice. Please consult with your tax advisor before making any investment decisions.
If you have any questions about the Checkbook Control IRA LLC, please call us or schedule a call with one of our IRA Specialists.
