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Navigating Real Estate Investments with Your IRA: What You Need to Know

ARTICLE | December 19, 2024

Authored by Vasquez + Company


Investing in real estate through an Individual Retirement Account (IRA) offers a way to diversify retirement portfolios. This article, "Real Estate and Your IRAs", explores the key rules, benefits, and considerations when investing IRA funds in real estate. It covers the necessity of a self-directed IRA, the implications of property management, and how to comply with IRS regulations. Discover how to leverage real estate as a part of your retirement strategy and ensure compliance with tax laws.

Key Points:

  • Self-Directed IRA Requirement: A self-directed IRA with a trustee is needed to invest in real estate.
  • Rules for Real Estate Investment: The property must remain in the trust until distribution, managed by the trustee, and any rental profits must go back into the IRA.
  • Tax Considerations: The property is treated as any other investment, and tax implications need careful handling.
  • Alternative to Mortgage Financing: Consider using partnerships or LLCs to purchase fractional shares of property to bypass the need for a mortgage.

For more information, read the full article here.

 

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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