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Investors & landlords
No, it won't raise any red flags. People do it all the time. You missed, or misinterpreted, the "exception for personal transactions of individuals" in IRC Section 7701(o)(5)(B). For an individual, the economic substance doctrine only applies to "transactions entered into in connection with a trade or business."
Don't worry about it.
March 12, 2023
12:47 PM