Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I understand that, although it is not common, it is possible to uses an IRA to invest in any type of real estate and when sold, the profits go back into the IRA.

Sort of correct, yes. The profits don't go back into the IRA, the IRA itself owns the real estate so the profits just stay in the IRA.

Do you know anyone who knows about this strategy?

Why, yes. I do. ;-)
Try this posting from a few years ago. I don't believe there are any material changes other than the increases in the allowable annual IRA contributions.
http://boards.fool.com/Message.asp?mid=17596619

I further understand that there is no penalty for withdrawing these funds to invest.

Whoa there. You don't withdraw the funds to invest in real estate. The IRA itself needs to invest in the real estate.

You might be getting confused with a first time homebuyer being able to withdraw $10k from an IRA to use as a down payment on their home. These are two very different things.

--Peter <== who has drug out that old post twice in the last two weeks.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.