Rental Property Inside an Inherited IRA

[Mark Sacandy]

My sister and I own a rental property within an Inherited IRA. Previously, I had no knowledge of this kind of account. They pay all of the maintenance, taxes etc from the account and we just build our balances. There are funds from my late sister that were in another inherited account and from which I was required, this tax year, to accept a RMD. My question is, will I have to liquidate a portion of the property within the IRA in order to take a RMD this year? I'm probably omitting important information, but if others will ask questions, I'll try to more focus my inquiry.

[Dmitriy Fomichenko]

@Mark Sacandy,

If you don't have enough cash in the IRA to satisfy the RMD you will have two options:

1. Liquidate the property

2. Take a portion or the entire property out as "in-kind distribution."