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New Direction Trust Company – Learn more about investing in Real Estate with our featured blog posts.
A real estate IRA doesn’t have to hold tangible property. The power of self-directed investing lies in your capacity to put almost any strategy to work for your retirement. There are many “subcategories” in the real estate field—long-term rental properties, fix & flips, land speculation, etc.—all of which your self-directed IRA can hold.
About NDTCO
We are a private financial trust based in Louisville, Colorado that provides best-in-class custodial services for more than 50,000 self-directed accounts and holds $3.7 billion in cash and assets for our clients. Our ongoing mission is to provide the education, flexibility, and account management tools investors need to realize that the spectrum of self-directed investments is broader and easier to manage than they think.
Question: Is it true I can’t live or vacation in my real estate IRA property? Answer: True. The IRS prohibits benefiting personally from any asset owned by your IRA (i.e., self-dealing). Furthermore, you can’t let any of your lineal relatives benefit from the asset either. This includes your parents, grandparents, children, grandchildren, spouse and fiduciaries. … Read More
How do I manage a real estate IRA? How do I manage expenses and cash flow in an IRA, particularly when I reach retirement age and have to take required minimum distributions (RMDs)? Planning for cash flow needs is critical for any investment strategy. This is especially true when investing in illiquid assets like real … Read More
Question: If I purchase property with non-IRA funds, I can write off depreciation. I can’t if I buy it with my IRA. Why should I give up what appears to be such a significant tax advantage? It’s true that you may give up the depreciation tax advantage by investing in real estate with a tax-advantaged … Read More
Depending on the account structure and the beneficiary’s goals for the account, there are many different strategies available to invest in exciting alternative assets that lie outside of the stock market, including rental properties. Using an Inherited IRA to invest in real estate provides the opportunity to generate income from rent, appreciation, and more. Ready to … Read More
A 1031 exchange allows taxpayers to defer taxable gains on exchanges of like-kind assets, such as property for property. Because IRA earnings already carry tax benefits, retirement account holders rarely need to employ a 1031 exchange. However, some IRAs may earn taxable income (and taxes) when holding assets purchased with debt financing. In this case, … Read More
Real estate is a common investment choice for self-directed IRA account holders. Investors can translate pre-existing knowledge of the real estate market to their IRA investment strategy. Part of devising a long-term plan for your real estate IRA is understanding how refinancing your IRA-owned real estate can reduce UBIT or unrelated business income tax. Want to … Read More
New Direction Trust Company (“New Direction”) performs the duties of a directed custodian. It does not provide any investment advice, legal advice, or tax advice. New Direction does not undertake any due diligence for you, including with respect to any investment or investment provider featured in this blog post or joint webinar or any other investments that you choose to hold in your New Direction account(s). Any information regarding any investment provider or investments that is contained in this blog post or Webinar was provided by the third-party investment provider. New Direction is not affiliated with, does not control or direct, and has no responsibility over any third-party investment provider or investment, and the inclusion of any investment provider or investment options in this blog post or Webinar does not represent an endorsement or recommendation of the investment provider or investment by New Direction in any way. New Direction does not endorse or recommend any investment provider or investment, including those found in this blog post or Webinar. Information and third-party links contained in this blog post or webinar are provided for informational purposes only, and it is solely the responsibility of investors to perform their own, independent due diligence on any investment opportunity. Investors should consult their own investment, legal, and tax advisors before making any investment choices.
