If a person already has land/lot through the Traditional SDRIRA, would the purchase of a mini travel trailer for that lot be allowed under the SDRIRA? The intention is to rent the unit. In my area the growth and demand for a little land and fresh mountain clean air & water is exponential. I figure it may be worthwhile to get the monthly earnings back into the SDRIRA this way. The acquisition cost is fairly small, compared to the potential earnings. The reason I ask is that it is technically a recreational vehicle, however its going to be rented on a lease agreement for 6-12 month basis. Would that fall into a rental home category? or would that even matter.
I would think your IRA could own the land, you buy the RV and do a split between the two when rented based on value.
Absolutely NOT! Can put personal RV on IRA owned land.
IRA could buy RV, put it on a land it owns and rent it out. But everything must be arms length, IRA owned can't do any work and must use unrelated third party for any improvements/repairs.
I would think your IRA could own the land, you buy the RV and do a split between the two when rented based on value.
Absolutely NOT! Can put personal RV on IRA owned land.
IRA could buy RV, put it on a land it owns and rent it out. But everything must be arms length, IRA owned can't do any work and must use unrelated third party for any improvements/repairs.
Thanks for the feedback everyone. I spent some time on research and decided that it would be a less sticky situation to develop the land further and rent out the lot. The resident can park their own RV on it. Every month they would pay parking lot rent. This may be attractive as the lake & mini grocery store is near by and we have clean fresh air.