The 1031 Exchange Institute

Welcome to The 1031 Exchange Institute™. The 1031 Exchange Institute is your complete online resource for 1031 exchange, 1033 exchange, 1034 exchange, 721 exchange, 453 installment sale and 121 exclusion information.  Information will also be provided regarding Self-Directed IRAs, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs. 

The 1031 Exchange Institute is dedicated to educating and informing real estate investors and their advisors on the benefits of 1031 tax-deferred exchanges and other tax deferred and tax exlcusion strategies so they can make better informed investment decisions.

THE SELF-DIRECTED IRA BLOG™

Welcome to The Self-Directed IRA Blog™. The Self-Directed IRA Blog is sponsored by Exeter IRA Services, LLC to help educate and inform real estate investors and their advisors so they can make better informed investment decisions when investing in real estate related assets inside a Self-Directed IRA.  The Self-Directed IRA Blog will cover all things related to Self-Directed Individual Retirement Accounts, including Traditional IRAs, ROTH IRAs, SEP-IRAs and SIMPLE IRAs.  You are welcome to post a comment on any of the articles or ask follow-up questions, but please no solicitations or SPAM posts.

Tuesday
Feb042014

One IRA Rollover Per Year Rule Interpreted by Tax Court 

The U.S. Tax Court has taken a much narrower interpretation of the one (1) IRA Rollover per year rule in a recent court ruling than what the Internal Revenue Service has taken in its IRS Publication 590. 

In Alvan L. Bobrow et ux. v. Commissioner; T.C. Memo 2014-21; No. 7022-11, the U.S. Tax Court ruled that the one (1) IRA Rollover per year is to be interpreted on a per individual taxpayer basis and not on a per Individual Retirement Account basis, despite the fact that IRS Publication 590 interprets the one (1) IRA Rollover per year rule as applying to each Individual Retirement Account and not each individual taxpayer.

This U.S Tax Court Memorandum takes a much more restrictive interpretation of the one (1) IRA Rollover per year rule.  Although IRS Publication 590 is not authoritative and can not be used or cited as precedent, most individual taxpayers have relied upon the IRS Publication 590's interpretation because that was the only interpretation that has ever been publish until now.

Therefore, on a conservative basis, the one (1) IRA Rollover per year rule should be interpreted to mean one-rollover-per-year-per individual taxpayer, not per Individual Retirement Account, until further guidance is issued.