Very recently, we closed a real estate transaction with almost 40 acres of land. It was located in the Brasstown area of Murphy, NC – and it was done in a Self Directed IRA. A Self Directed IRA (or SD IRA) is an excellent way to buy, invest, and own real estate.
The ability to buy real estate investments inside your IRA provides some excellent tax advantages. Your real estate investment essentially is provided the same tax advantages your Traditional, Roth, or SEP IRA receive through conventional investing – only in real estate!
For Example (a simple one): You buy a $100,000 rental house in your SD IRA. You collect monthly rents of $750, which is $9,000 per year for 3 years for a total of $27,000. At the end of 3 years, you decide to sell it and get $130,000. Because you own it in your SD IRA and all funds stay there, you don’t pay taxes on your rental income OR gains when you sell it! That’s a total of $57,000 you were able to shelter from taxes when you normally would have paid taxes on the rental income AND capital gains on the sale! A sweet strategy! 😆
As with typical IRS regulations, there are some requirements, conditions, and hoops you must jump through, however they aren’t too complicated.
Would you like to invest in Real Estate with your IRA? Call The Poltrock Team at RE/MAX Today and let us help guide you on how to do it and identify properties that meet your investment goals.
The Poltrock Team – www.MyMurphy.com – REMAX Mountain Properties in Murphy NC – Call Toll Free 1-866-Murphy-NC or 1-866-687-7496 – JohnPoltrock@gmail.com