Real Estate

What are the self-directed real estate investment rules and prohibited transactions?

The Self-Directed IRA owner and disqualified family members must not benefit, live, or vacation at the property. All expenses and revenue must flow to and from the IRA.

  • Your retirement account is not allowed to purchase real estate you already own. The IRA and IRA funds must be listed as the buyer, not personal dollars.
  • You and other disqualified people may not use the property (see disqualified person list here).
  • You and other disqualified people may not perform any property repairs or improvements. Personally, a third-party must be hired to do any repairs to the property. You can still oversee and monitor workers hired by your IRA, but you can't do physical work.
  • When in doubt, if you can easily remove yourself from the day-to-day business, it’s best to do so and use a trusted, non-disqualified person. Here is a list of acceptable substitutes.

Want to read more?

 

                                       SIGN UP NOW