Investor · Albany, OR · Member since 2015 · 13 posts · 1 vote
My husband inherited his father's home in 2013. It sold on 12/28/15 for $161K. Would I be able to put the proceeds into a self-directed IRA to avoid being taxed on it?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
More importantly, talk to a CPA. Your husband's "gain" isn't the gross sales proceeds, it's that minus his basis, which would generally be the fair market value of the property when he inherited it....ie., was valued at $140k when inherited, $21k gain, or so.
Unfortunately no. An IRA may not transact with the account holder in any direct or indirect fashion. Since you husband owns the property, it is off limits to an IRA in his name.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
More importantly, talk to a CPA. Your husband's "gain" isn't the gross sales proceeds, it's that minus his basis, which would generally be the fair market value of the property when he inherited it....ie., was valued at $140k when inherited, $21k gain, or so.
Self Directed IRA & 401k Advisor · Wenatchee, WA · Member since 2014 · 2k+ posts · 2k+ votes
10y
Lily,
IRA plans are funded via contributions the account holder makes from regular income. A traditional IRA can accept contributions of up to $5,500 for those younger than age 50, or $6,500 for those age 50 and older.
To learn about types of income that qualifies for making IRA contributions visit the following IRS website, then click on Publication 590 and see the handy chart on page 6 which lists the types of income that qualifies vs the types that do not.
My husband inherited his father's home in 2013. It sold on 12/28/15 for $161K. Would I be able to put the proceeds into a self-directed IRA to avoid being taxed on it?
Other issues aside, once you take possession of the funds, it's taxable. Proceeds must come directly from COE to the 'non-taxable' account of your choice.