Posted by firefox on August 23, 2003 at 14:31:26:
Would it work to instead structure the deal as a series of options? For example, I buy 20% now, with a 1 year option to buy an additional 20%, a 2 year option to buy another 20%, etc etc.
installment purchase == debt? - Posted by firefox
Posted by firefox on August 14, 2003 at 17:13:20:
If my IRA buys something for $3000 on a purchase agreement with terms like “$1000 now, $1000 in 1 year, and $1000 in 2 years”, has it incurred “acquisition indebtedness” and therefore subject to UBIT on the transaction, even though a promisorry note was not executed?
Re: installment purchase == debt? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on August 16, 2003 at 12:06:42:
Probably a no-no, unless the debt is non-recourse (i.e. - creditor can seize the asset, but not go after the IRA).
John Hyre