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Tax, SDIRAs & Cost Segregation

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Nick Scalero
  • Real Estate Investor
  • Mountain View, CA
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53
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Self-Directed IRA questions

Nick Scalero
  • Real Estate Investor
  • Mountain View, CA
Posted Mar 24 2009, 12:32

I'm considering a self-directed IRA but have a few questions.

First, If I purchase a house outright how do I calculate ROI? Is it simply (Monthly Income - Expenses) * 12 / Purchase Price?

Second, since I pay Taxes, Mgmt fees, Insurance, etc out of the IRA how do I (or do I ever) recover these costs from a tax standpoint?

Third, when I sell a house do the full net proceeds go into the IRA with taxes defered until I start to draw from the IRA?

Any recommendations for a reputable company with good fee structure and solid managment for the IRA?

I may have other questions as I think of them. For example, I'm thinking I don't want to leverage a house in the IRA since I get taxed on a portion of the monthly income based on the percent leverage. Any thoughts on that?

Thanks in advance.

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