New Tax Court Case Reinforces IRS Validity of the Self-Directed IRA Structure, According to IRA Financial Group Tax Attorney


Miami, FL (PRWEB) June 19, 2013

The recent Tax Court case Peek v. Commissioner (140 T.C. No. 12, May 9, 2013) reinforced the ability for a retirement account investor to use retirement funds to invest in a wholly owned entity without triggering a prohibited transaction. In the Peek case, the U.S. Tax Court ruled that a taxpayers personal guaranty of a loan by a corporation owned by the individuals IRA is a prohibited transaction under section 4975(c)(1)(B). The Court found that the taxpayers had provided an indirect extension of credit to the IRAs, a prohibited transaction under Internal Revenue Code

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