Who may I deal with in my IRA? There are family members that are not prohibited parties.
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Let’s talk briefly about close parties that almost everybody forgets that you can have some transactions with. And you really need to call us before you do it because they’ll look at the heart of the transaction, if you’re trying to get around the rules. But if it’s a straight up deal, you’re fine.
Your brothers, your sisters, your siblings they’re okay; your stepchildren if they’re not adopted, they’re okay; your in-laws, and your outlaws (chuckle). So you could buy a piece of property from your brother, you could turn around and rent it to your in-laws. You could hire your nephew to work on it.
So it’s just the following people: Your parents, your children, their spouses, their children, their spouses, your own spouse in any company you guys run, or own, or control. That’s it.
So, there are some close people you can deal with. Now, you’re going to structure the deal to try to get around taxes and it’s really not, it’s kind of a shady structure and you’re dealing with your brother. You’re going to have some issues because they’ll look through it and see what the real intent is. But if the intent is straight up and if it’s done right, then you can deal with your close relatives.