Question: Helene Toolson age 67 is an avid collector of historical
Helene Toolson, age 67, is an avid collector of historical documents and signatures. Her collection is worth over $300,000 and, by any measure, is an excellent investment. Helene also owns an IRA with First State Bank. She recently learned that a letter writ-ten by Thomas Jefferson was available for purchase out of a private collection. As a result, she met with a bank vice president to discuss having her IRA acquire the letter. The vice president determined that state banking laws would not prohibit such an acquisition by an IRA. The asking price of the letter is $32,500. Would the purchase of the letter by her IRA have any adverse tax consequence to Helene?
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