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Author: LiamMore Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Buying Real Estate in an IRA Date: 8/1/2002 2:36 PM
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Also,

So, I took $10 [I think you mean 10k] from my wife's and mine ROTH acounts, put the money down on a rental property and started renting it out in 10/01...Upon filing my 2001 taxes I found no taxable situations from the withdrwal, just a taxable income from the rent and a nice offseting tax deduction for the interest on the loan and a sweet deprectiation deduction."

I believe Roths have to be open for a minimum of 5 tax years to avoid the 10% penalty. I think you owe 10% of the withdrawal. The earliest you could have opened up the account is 1998.
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