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Your IRA may not buy an investment from or sell an investment to a disqualified person as defined by Internal Revenue Code Section 4975. To do so is known as “self dealing”.
Additionally, investments made with self-directed IRA funds must be at arms length, which is most often defined as a willing buyer and willing seller coming together with no undue influence from outside sources.
Disqualified persons are individuals or entities between whom or which an IRA is prohibited (absent a special exception) from engaging in any direct or indirect sale or exchange or leasing of any property; lending of money or other extension of credit; furnishing goods, services, or facilities; or transferring to or permitting the use of IRA income or assets.
NOTE: The term “disqualified person” under the Internal Revenue Code Section 4975 does not include siblings (brothers and sisters) or aunts, uncles, and cousins of the IRA owner.