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Your Family Estate - Coggle Diagram

- - - - IRC §501(c)(3) + §4958 (Excess Benefit Transactions)
        
        Loans
        
        Loans to Related Parties Must Be: ✅Arm’s-Length, ✅Market-Rate Interest, ✅Properly Documented, ✅Focused on Exempt Purpose
        
        FMV Transactions
        
        FMV Transaction — IRS Green Check: ✅Arm’s-length, ✅market-rate transaction, ✅approved in advance by independent decision-makers, ✅supported by comparables, ✅fully documented, ✅conflict disclosed, ✅commercially enforceable, and ✅providing no excess benefit.
  - - - Business LLC #1
        
        Operates In Public + Responsible for Debts & Payments
      - Real Estate Propery Management LLC
        
        Collects Rent & Manages Property
        
        If Sued By Tenant It Owns No Assets and Reports Income To Elsewhere.
      - Business Corporation #1
        
        Operates In Public + Responsible for Debts & Payments
      - Business LLC #2
      - Real Estate LLC
        
        Responsible For Building Credit and Getting RE Property Loans
        
        Credit Limit Grows Keeping Loans This LLC
        
        It Owns No Property on Title or Quitclaims to Holding LLC (Mortgage Docs Permission Required)
      - Business Corporation #2
        
        Operates In Public + Responsible for Debts & Payments
    - - Brokerage Account(s) - WY LLC
        
        Family Management Corporation - Accountable Plan
        
        Reimbursement Plan
        
        Accidential Benefits
        
        Corporation has management agreement with WY LLC (Ownership)
      - Real Estate Property LLC (Series LLC)
        
        Owns Real Estate
      - Personal Property LLC (Series LLC Based on Amount Thresholds)
        
        Owns Cars
        
        Owns Boats
      - Bank Account(s) - WY LLC
    - - Friendlier with Bank Accounts
      - Friendlier with Venture Capital / Private Equity
  - - - IRC §4941 (Self-Dealing)
        
        Under IRC §4941, acts of self-dealing include:
        ✅ Selling, exchanging, or leasing property with a disqualified person.
        ✅ Lending money or extending credit.
        ✅ Furnishing goods, services, or facilities.
        ✅ Paying compensation or reimbursing expenses.
        ✅ Transferring foundation income or assets for personal benefit.
        
        Prohibits Loans and FMV transactions with related parties unlike 508C1A (but not religious or faith based)
- - - - Contribute Post Tax Dollars in form of Capital Contribution
      - Qualifed Retirement Contribution - 1040 Tax Burden
      - Executive Bonus C-Corp (Section 162 Plan) for Life Insurance
    - - Can Write off Deduction - IRC §168(k)
      - Can Use Section 179 by Personal Guarantee in your name loans that will be owned and title by Trust Owned LLC - 1% Partner (from outside lender or your Estate based on AFR Rules) - IRC §465 (At-Risk)
      - Can carry over any access deductions to yourself from LLC via IRC §461(l)
      - Tax Burden From LLC Expenses or Deductions to your through - IRC §701 (Partnership Flow-Through) even if assets such as real estate, yachts (marine vessel) charter, planes (aircraft) are own in the Trust Owned LLC that owns 1% of Partner LLC with you
      - Trust Owned LLC can provide tax free capital contributions to Partner LLC based on post tax dollars capital contributions from the Trust Owned LLC via IRC §721 (Tax-Free Investment)
      - 99% YOU / 1% Asset LLC - The "Loss Sponge" for your 1040 via IRC §701 / §704
- - - - Business Trust Files - 1041 - From WY LLC (Operations) and WY LLC (Ownership)
    - - Reduce CPA + Accounting Cost
  - - - Buy it right back immediately
        
        If you sell it lost for $90,000 and expect stock to go back up you can report a loss instead of capital gain which can reduce your taxable income by $90,000 and if you are long on the security if it goes up 100% more you didn't lose anything and reduce your taxes.
- - - - The Government Controls the Nonprofit, but not the LLC
- - - - They get disbursements