Real Estate IRA
Thank you for your consideration. Is it possible to invest one’s Roth or Traditional IRA in real estate such as a single family home? What are the pros and cons of doing this? What could I suggest to people who ask me about this topic?
Permalink Submitted by Marvin Rotenberg on Tue, 2010-01-19 17:16
The simle answer is yes you can invest in real estate in a traditional and Roth IRA. There are however very strict and complicated rules regarding what you can and can not do with real estate held in IRAs. For example, you or a family memebr can not live in the property, all expenses must be paid from the IRA, you personally can not perform work on the property and there are many other factors to consider. If the IRA incurs debt financing be careful of what is called Unrelated Business Taxable Income (UBTI). That may cause you to have to file an income tax return for the IRA. Before entering into a real estste contract you should consult with an advisor knowledgable with these type of tranactions in an IRA.
Marvin
Permalink Submitted by Marc Schain on Tue, 2010-02-09 16:19
I know there was some discussion about owning real eatate inside an IRA in the IRA Advisor, but I cannot remember what month it was in? Any help with this.
Marc Schain