Trump's New Tax Proposal and YOUR IRA [EPISODE #263]
The Big Idea
The Trump Administration has proposed a series of tax cut objectives which will, as a whole, have tremendously stimulative effect on the economy. But there's one problem: Part of the proposal could hurt your self-directed IRA...
Points To Ponder
- The Trump Administration has provided a list of policy goals which will dramatically reduce personal and corporate tax rates
- The effects of such tax cuts will be very stimulative to the economy, as has been shown repeatedly and undeniably in the past
- Part of the proposal is to reduce corporate income tax rates from 35% to 15%
- Much to the delight of most observers, Trump wants to extend that rate to pass-through entities like LLC's and S-Corporations, which will result in an effective tax cut there as well
- However, if your own an LLC in your IRA, it could mean that your LLC is obligated to pay 15% tax on its profits, which would defeat the purpose of owning the LLC in an IRA
- This is not a certainty and may be worked out as these policy goals are translated into law
- You must stay informed about this issue in case it becomes necessary to reach out to your representatives. Do that by subscribing to this show now.
Bryan Ellis is host of Self Directed Investor Talk, America's #1 radio show and podcast for affluent self-directed investors. He's also an expert in self-directed IRA's, solo 401k's and turnkey rental property investing... at least, that's what his wife tells him 🙂 He's a contributor to well-respected publications like TheStreet.com, Entrepreneur and ThinkRealty. Bryan lives in metro Atlanta, Georgia with Carole Ellis - his wife, business partner and best friend - and his 4 children ranging in age from 2 to 19.