With the warm summer months ahead of us, we in the Rocky Mountain area have begun stashing our skis, oiling our bike chains, and checking our tire pressures. Those seeking a new spin (pun intended) on bike-related adventures should consider a visit to Utah to experience the diverse terrain and a pleasant springtime climate. Our 45th state is home to Moab, Arches National Park, and Monument Valley. These, among other unique destinations in Utah, feature some of our country’s most incredible scenery and outdoor adventure opportunities.
From day rides through towering buttes to more extreme mountain biking pursuits, the Beehive State offers anything an outdoor enthusiast could want. Having recently visited Moab for the first time, I couldn’t help but notice how local businesses were tailored to the landscape and its tourists. Specifically, mountain bike rental shops provided out-of-state visitors the chance to check out the Slickrock Trail, or take a more casual ride through any stretch of the region.
As with most businesses, a rental shop can be owned by a self-directed IRA. Self-directed investors are becoming more aware of rental properties as potential retirement assets but may not consider non-real estate rental companies as viable possibilities. Private equity is another common strategy. The business itself can be held as an asset in your IRA or 401(k), with any expenses paid by the plan and any income returned to the plan. You must also consider disqualified persons, as you and anyone in your direct family (parents, children, their spouses, etc.) must always remain at arm's length from business operations.
Fair market valuations and unrelated business income tax (UBIT) may apply as well, but New Direction Trust Company is always available to assist with the logistics of alternative IRA investing. The idea of a bike shop in your retirement account may seem farfetched, but it’s absolutely possible. Feel free to give us a call at 877-742-1270 or send us an e-mail at firstname.lastname@example.org for more information about abstract but potentially lucrative ways to invest for retirement.