Farm land in an IRA
I have a client who wants to purchase a small farm. He plans on cash renting the land to a local farmer. He has $100,000 in an IRA and $100,000 in cash. The farm cost $200,000. What would be the best way to structure the purchase. Could he set up the farm as a corporation and have 50% of the shares owned by the IRA and 50% of the shares earned personally?
Any suggestions are appreciated,
THanks
Permalink Submitted by Jose Morales on Thu, 2011-12-01 16:45
You and your client need to find an IRA Custodian that specializes in non-traditional IRA investments. It is very important that you find one that truly desires this business and has specialized in it for a while, rather than try to strong arm a local bank or financial institution into accepting this type of IRA. The pitfalls of something being done wrong are very real and very costly.