Purchasing a property out of an IRA

[Mark C.]

Hi All,

I was trying to look at some tax strategies and was curious if anyone else knows if this is possible. I have rentals in my IRA. Is there lending institution that would allow me to put 20-25% down to buy the property out the IRA? I surmised there wouldn't be a tax event.

The bank replaces the cash value in the IRA and a note gets created outside like a private investment?

Anyone know of this or banks that would do it?

[Dmitriy Fomichenko]

@Mark C.

While you can not personally purchase property from your IRA, what you can do is "in-kind distribution". This would be taxable event, you have to appraise the property and that amount will be reported to you as ordinary income by the IRA custodian.