Laura Artman, MBA RE LE
Laura Artman, MBA

Committed to providing clients with services that enable them to create more wealth.

Category:
Real Estate Investments
Tags: , 212 words

Can an IRA Own Real Estate?

A traditional IRA, Roth IRA, or SEP can own real estate in a self-directed account. Eligible types of property are land, commercial property, rental condominiums or residential property, trust deeds, and real estate contracts.

  1. The purchase must involve an IRA custodian or trustee specializing in real estate. The custodian or trustee actually makes the purchase on behalf of the account owner and holds the title to property.
  2. An owner cannot have any personal use of the property. Your personal residence or vacation home cannot be owned by an IRA.
  3. Real estate that is already owned cannot be placed in the IRA. Property owned by immediate family cannot be purchased.
  4. All of the property expenses must be paid from funds in the IRA. Income generated from the investment is deposited in the IRA, which can provide the liquid funds needed for expenses.
  5. Real estate may be withdrawn from an IRA for use as a residence or vacation home when the owner reaches age 59½.
    1. The IRA can sell the property or transfer the title to the owner.
    2. Income tax will be due on the current value of the property if it has been held in a traditional IRA
    3. If the property was held in a Roth IRA, there is no tax on the distribution.
Contact Us!
Contact Us!
  • The Quest for High ROI

The Quest for High ROI

Portfolio diversification, tax efficiency, profit generation, consistent cash flow, inflation protection, and wealth creation are the primary goals for real estate investing. In California, it is possible to excel in these areas with real estate [...]

  • Artificial Intelligence, website chat bots, robots

Fall in Love with Your Robots

The world of business is undergoing a revolutionary transformation that is changing how we organize and operate businesses. In an age of robotics, "Cut n Paste" business is no longer an acceptable approach to performing [...]

  • How to Not Beat the Market

How to Not Beat the Market

Recently I had the same conversation with three different women. I had placed my condo on the market and all three women advised me that there is a) more room in the market for growth, [...]

  • Managing Your Money After Retirement

Managing Your Money After Retirement

Taking the Right Kind of Risks The greatest challenge in investing as we age is to resist the urge to stop taking financial risk. In our minds, we are playing it safe by eliminating stocks [...]

  • Buyers Guide for Realty

Buyer’s Guide

Start Your Search The first step in buying a new home is for us to identify the neighborhoods you want to live in. Save your favorite homes, then add them to a collection – [...]

  • Realty During Covid-19

Realty During Covid-19

A Guide for Buying and Selling Realty During Covid-19 became an important priority when the world came to a sudden halt and the State of California ordered us to stay home.  As we continue to [...]