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Updated about 6 years ago, 11/18/2018
Seller financing property that I own in my IRA
I own 8 properties in a self directed IRA. I am interested in selling one or more, but I want to carry the paper for a continued income stream.
My questions are as follows:
How would the transaction be handled from a paper work prospective? On one particular property I have $90k invested and it would sell for $240k.
Would the IRS consider this a distribution of the net sales prices say $225k , even though I may only get $10k down? or
Would this be considered an installment sale like I have done outside my IRA?
My custodian in Equity Trust.
If you have done something similar please let me know. Thanks!