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 Checkbook IRA is an investment approach that allows the account holder to write checks using the IRA’s cash. The account holder achieves this control by establishing and managing an account-owned entity (often an LLC). This setup allows investors to manage their cash and account assets directly as the LLC/entity manager. Ready to open a … 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
Does your self-directed IRA hold a stake in an operating business that passes income taxes through to investors? Does your account earn rental income from financed real estate? In either case, you may receive a Schedule K-1 that describes earnings generated under the aforementioned circumstances. Your individual retirement plan may owe unrelated business income tax (UBIT) on these earnings, … Read More
Summer vacations are the perfect time to find a vacation home in an ideal location. Investors are often in the market for clever solutions for affordability, so it’s important for them to be aware of their available investment tools. One such tool is the self-directed IRA. Did you know that your IRA, 401(k), or Health … Read More
Tax-advantaged individual retirement plans provide opportunities for long-term financial success, but sometimes offer surprises. There’s a misconception that distributions are the only taxable events inherent to retirement funds, though others may exist as well. Taxable income and income tax can occur INSIDE your self-directed IRA and must be paid from the account itself. Depending on the … Read More
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