Scenario: An IRA holds 100% of the interests in a LLC, which in turn holds rental / investment property in Pennsylvania.

Sep 25, 2012
Q:

An individual has a self-directed Individual Retirement Account. The IRA holds 100% of the interests in a limited liability company, which in turn holds rental / investment property in Pennsylvania. For Federal purposes, the LLC is disregarded as an entity and the rental / investment property is deemed to be owned directly by the IRA. Would the LLC be subject to Capital Stock / Foreign Franchise Tax?

A:

Yes, the LLC would be subject to the Capital Stock/Franchise Tax.
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