I own an investment property outright and I am curious if it is possible to transfer deed from my name to the SDIRA account I would set up? Would I be able to sell it to my SDIRA or would the deed just transfer with say a $1.00 transaction?
Thanks in advance!
Nope. You're a disqualified party and your SDIRA cannot engage in any transactions with a disqualified party.
As noted, what you seek is entirely out of the question.
As a disqualified party to your IRA, you may not personally transact with the IRA in any fashion. You may not sell a property you hold personally to the IRA, nor may you contribute to the IRA in-kind.
A self-directed IRA is subject to all of the same rules regarding contributions, distributions, transfers, etc. as any IRA. A self-directed version is simply a plan with a different business model that may be invested into a broader array of asset classes. A self-directed IRA is a way to diversify.
If you have success in real estate as an asset class, and have funds available in an old 401(k) or an IRA in your name, you could establish a self-directed IRA and have the IRA acquire a rental property as a means to achieve growth. That property would need to be purchased by the IRA from an unrelated 3rd party, however.
Thank you for the feedback! I am going to continue to gain some initial experience in investing with my current property and in the future look to invest through a SDIRA once I convert my old 401k account to a SDIRA.
Also, see the following regarding the prohibited transaction rules.
I wish it was possible. Everybody would do it. I would love to have all depreciated property put into the tax free Roth IRA account. Imagine if everybody did that nobody would pay taxes. START WITH IT IN AN IRA AND HAVE TAX FREE INCOME FOR LIFE!
I guess it was just wishful thinking and yes, it would be great to be able to save a little more income. I feel they already have 2 hands in my pockets with my W2 income!