“Checkbook Control” IRA Gaining in Popularity in Light of Recent Tax Court Case Confirming its Legality, According to IRA Financial Group Report


Miami, FL (PRWEB) September 18, 2013

Peek v. Commissioner (140 T.C. No. 12, 2013), a recent U.S Tax Court is an important case because it reinforces 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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