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Is it possible to buy a condo with monies from my IRA and have it still classified as an IRA? Perhaps there are other posts on this question. If so what numbers are the posts?
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RiskTakerNana asks,

Is it possible to buy a condo with monies from my IRA and have it still classified as an IRA? Perhaps there are other posts on this question. If so what numbers are the posts?

Yes, but only if the condo is an investment and not your personal residence or a vacation home you use a few weeks a year.

intercst
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Probably not.
It is possible to buy investment real estate within your IRA, but the rules are strict, and the risk of running afoul of prohibited transaction rules and self dealing, are high.

http://www.fairmark.com/rothira/real-prohibited.htm

BruceM
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Is it possible to buy a condo with monies from my IRA and have it still classified as an IRA? Perhaps there are other posts on this question. If so what numbers are the posts?

Yes, but only if the condo is an investment and not your personal residence or a vacation home you use a few weeks a year.

In addition, all income (rental, etc.) from the investment property must be deposited into the IRA and all expenses (property taxes, repairs, improvements, HOA fees, insurance deductibles, etc.) for the investment property must be paid by the IRA.

If you are subject to RMDs, you would also need to ensure that your IRAs have enough cash to pay you your RMDs in addition to paying any expenses for the investment.

Here's an article you might be interested in: http://www.kiplinger.com/magazine/archives/2005/03/IRA.html?...

AJ
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Owning real estate within an IRA is essentially creating a personal REIT that consists of just one property.

This adds lots of expenses and potential problems that a normal REIT would not have and you lose diversification.

It would probably accomplish just about the same thing buy buying a carefully selected REIT within the IRA.

Greg
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If you are subject to RMDs, you would also need to ensure that your IRAs have enough cash to pay you your RMDs in addition to paying any expenses for the investment

I wonder if come RMD time, if the IRA doesn't have the cash, if the IRS would accept taking out the interior doors and removing a couple of applicances as meeting the RMD for the year?

:-)

BruceM
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