REAL ESTATE AS IRA INVESTMENT?
Many people with Individual Retirement Accounts may wonder if they can roll their IRAs into real estate. The answer is a very qualified “yes.” In a self-directed IRA, the IRS stipulates that investment property must be rented out at all times and not used as a personal residence or rented out occasionally. This rule prevents owners from taking otherwise normal real estate deductions such as property taxes, mortgage interest, and depreciation on personal tax returns. In addition, there is a host of other “prohibited transactions,” including the fact that the property is owned by the IRA and that the IRA must be held under the custody of a fiduciary firm. Side-stepping prohibited transactions risks loss of IRA tax-deferred status.
There are numerous facets to a real estate transaction. We will be there to guide you, step by step. Contact us today at CANNON REAL ESTATE, (413) 527-8311, to arrange an initial meeting at our office, 199 Northampton Street, Easthampton. Not all agents and agencies are the same. You will benefit from our extensive real estate experience and expertise. “Your local real estate professionals for over 30 years.”
HINT: Real estate purchased within an IRA cannot be rented to “disqualified persons” such as the IRA owner’s spouse, parents, children, and the children’s spouses.
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Our sincere thanks for helping us! We had attempted to sell our home in the past with another agency and didn’t receive anywhere close to the service you provided. Not only were you extremely professional, compassionate, and understanding, but you went out of your way to make sure we were happy. We were extremely pleased and you let us sit back and relax during a very hectic time in our lives. The fact that you got an offer in 4 days speaks louder than words! We can never thank you enough for making our dreams of moving in to a brand new home a reality!
Amy & Rick - Easthampton, MA