Private Placements

 

Private Stock

Defer Taxes with Private Stock in a Self-Directed Individual Retirement Account

Private stock in your Self-directed IRAPurchasing nontraditional assets with a self-directed IRA can help you diversify your investments, which may guard your portfolio against economic changes. Private Stock is one of the many options available with your self-directed Individual Retirement Account.

Private or closed corporation stock offerings are not available to the public on the open market. Normally, they are made to pre-qualified individuals. These offerings must comply with the securities Blue Sky laws in the state in which the offering is made. The number of individuals included in the offering cannot exceed the maximum stipulated by state law.

These offerings, usually made by corporations seeking capitalization, can be in any class of stock described in their prospectus. Many corporations act as their own registrar as well as transfer agent. They may or may not use market makers for their offerings. Purchases and sales are described in their offering materials, which you should study closely.

Partnerships and small businesses have been the backbone for our nation’s economic growth. Companies such as HP, Merck, IBM, Disney and GE were once private entities that went on to become pillars of the American business landscape.

Getting started is easy. Please contact our office for additional information. [For forms for Private Placements please click here]

American IRA, LLC does not offer investment, tax, financial or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.

Prohibited Transactions


What Triggers a Prohibited Transaction?


The IRS may assess a prohibited transactions tax if they learn that you have made a prohibited investment, or if your IRA has engaged in a transaction with a prohibited individual.

Prohibited investments include the following assets:

  • Life insurance
  • Certain kinds of precious metals
  • Art
  • Alcoholic beverages
  • Collectibles
  • Using the IRA or assets within it as collateral for a loan (other than a non-recourse loan within your IRA)

Additionally, you must comply with the following restrictions on prohibited individuals:

  • Neither you, your spouse, your descendants or ascendants, nor their spouses, nor any entities they control can lend to your IRA, nor borrow from it.
  • No prohibited individual can buy assets from or sell assets to your IRA, nor may any entity they control.
  • No prohibited individual can buy or sell services directly from or to your IRA, nor may any entity they control.
  • Neither you nor any prohibited individual can use IRA assets for their own benefit. For example, they cannot stay overnight in a property owned by your IRA, even if they pay rent.

For more information, the following links will open in a new window to information on the IRS website.

Note: The IRC materials linked to below are provided as a public service by The Legal Information Institute of Cornell University Law School, not the IRS.
TITLE 26 > Subtitle D > CHAPTER 43 > § 4975
IRC § 4975. Tax on prohibited transactions

American IRA, LLC does not offer investment, tax, financial or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.

Invest in LLC’s With a Self-Directed IRA

LLCs

Use a Self-Directed IRA to Invest in Limited Liability Company (LLCs)

Invest in LLC'sAn LLC is a legal organization that provides the advantages of a partnership while limiting legal liability of the individual partners the same way a corporation does. LLCs can be a great way to partner to purchase investments, and you can use a self-directed IRA to invest in LLCs. LLCs are considered securities in some states and may be required to meet the standards of securities offerings.

LLCs Can Be a Great Way to Partner to Purchase Investments