IRC 4975(f)(6)

[Guest RETaxGuy]

Taxpayer would like to lend from IRA to 50% owned partnership. All requirements of 4975(d)(1) would be met. Does 4975(f)(6) make 4975(d)(1) null? My initial thoughts:

4975(f)(6)(A)(i), along with the flush language kills loans to owner-employee, certain family members or certain corporations. Partnerships are not mentioned in these attribution rules and no other attribution should apply for purposes of 4975(f)(6), so on its face loan to 50% owned partnership works. Two concerns:

a) Am I missing a larger provision that would apply attribution via partnership?

b) Entity-Agrregate principles - if partnership is aggregate for purposes of 4975(f)(6), then may pass through "owner-employee" nature of the transaction....in short, indirect attribution.

Thoughts?

John Hyre