Is anyone buying and selling real estate in self directed IRA's?
I use mine for syndications because I find that the best way to invest and follow the self-dealing rules. Lending is very popular as well.
I mainly do lending but also own couple rentals, great way to invest and get income/gains sheltered from taxes.
I like to lend with my SD Roth, and it's a good way to invest if you want to be more passive!
This topic of conversation keeps coming up but I am baffled. RE is VERY tax efficient as is.
No need to cannibalize your IRA funds on RE. Use outside money for RE. Use IRA for highly taxable investments (i.e. stocks, options, your friend's start-up, etc.)
Hi @Alexander Szikla ,
You are referring to buy a fee simple interest in real estate, and you are right, in many cases is makes more sense outside of the Self-Directed IRA because of other tax structures available. However, it can and does make sense in some cases especially if there is going to be a quick flip/sale that would be taxed at ordinary tax rates.
There are many other ways to use a Self-Directed IRA to invest in real estate such as deeds of trust, mortgages, tax lien certificates, etc. These produce ordinary income and make perfect sense inside of a Self-Directed IRA.
@Bill Exeter - Agreed on flips as well as other vehicles like notes and such.