Pres. Obama Signs Repeal of 3% Withholding Tax

Included in a law giving tax credits to companies that hire unemployed veterans, President Obama has repealed a 3% withholding tax for government contractors.

President Obama signed the 3% Withholding Repeal and Job Creation Act (H.R. 674) after the legislation passed the House of Representatives with a vote of 422-0 and a 95-0 vote in the Senate earlier this month. The mandate was originally introduced in the Tax Increase Prevention and Reconciliation Act of 2005.

H.R.674 is a bipartisan bill that repeals a requirement that federal, state and local governments begin withholding 3% of payments to contractors (financial advisers included) in 2013. The Senate and House passed the legislation on Nov. 10 and Nov. 17, respectively.

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Self-Directed IRA Firm Offering International Investments

The IRA Financial Group, creators of the Self Directed IRA LLC program, has expanded its real estate program to include international investments.

The expanded Real Estate program allows IRA investors to use retirement funds to purchase foreign real estate tax-free. “Our tax experts have carefully studied international tax treaties as well as local tax rules to offer our clients with a customized self-directed IRA platform for making tax efficient foreign real estate investments,” said Scott Krokoff, a tax attorney at the IRA Financial Group.

Each client of the IRA Financial Group is assigned a tax attorney to help with the establishment of the Self-Directed IRA LLC structure for purposes of making foreign real estate investments, according to the company.

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A Self Directed IRA, also called a Self-Directed IRA LLC with “checkbook control,” is an IRS-approved structure that allows one to use their retirement funds to make real estate and other investments tax-free and without custodian consent. The IRA Financial Group explained that the Self Directed IRA involves the establishment of a limited liability company (LLC) that is owned by the IRA (care of the IRA custodian) and managed by the individual or any third-party.

To learn more about the IRA Financial Group, visit http://www.irafinancialgroup.com.

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