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the biggest benefit of real estate is writing off depreciation , and the tax free exclusion on a primary homeor the special capital gain rates if not a primary .
an ira held home gets none of that .
the biggest danger to a rental is no tenant or a long eviction and you can't add money from outside the ira to make up the shortfall .
it can be very hard getting loans too .
the restrictions and tax issues give it a thumbs down in my book .
I bought a $205,000 single family with IRA proceeds in 2007. It sold for $240,000 in 2015. Rent was $1400/month, only vacant for 1 month.
We added $138,600 to the account. A little less than $10,000 in property taxes. $7,000 in repairs. $8,000 in hazard insurance.
How much did your fund charge you to handle the transaction? Who was your account with? In this area most IRA funds charge 10% to manage a self directed account for RE purchases.
Location: Stuck on the East Coast, hoping to head West
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Quote:
Originally Posted by mathjak107
the biggest benefit of real estate is writing off depreciation , and the tax free exclusion on a primary homeor the special capital gain rates if not a primary .
an ira held home gets none of that .
the biggest danger to a rental is no tenant or a long eviction and you can't add money from outside the ira to make up the shortfall .
it can be very hard getting loans too .
the restrictions and tax issues give it a thumbs down in my book .
the biggest benefit of real estate is writing off depreciation , and the tax free exclusion on a primary homeor the special capital gain rates if not a primary .
an ira held home gets none of that .
the biggest danger to a rental is no tenant or a long eviction and you can't add money from outside the ira to make up the shortfall .
it can be very hard getting loans too .
the restrictions and tax issues give it a thumbs down in my book .
Yep. Totally agree. And any HONEST CPA will say the same.
I don't think the OP indicated that a CPA was suggesting the purchase in an IRA...
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