Is there any legal way to convert my IRA property for my use?

[John R ables]

I have 8 properties in my IRA. One of them bought years ago would really would be a good retirement place for me. I know the IRS rules indicate that I could not 'sell' the property to myself or use the property. Does anyone have experience in legally converting an IRA property to personal use? Even if it is a long term process (I know about the 5 year look back rule). Any ideas?

[Dmitriy Fomichenko]

Hello John, 

Yes, it is possible to convert the property owned by the IRA for personal use. In order to do so you have to distribute the property from the IRA, this is known as in-kind distribution. The same rules apply as cash distribution in terms of taxes (and penalties if distribution is taken prior to age 59 1/2). You would have to appraise the property and that amount will be report to you by the IRA custodian and will be taxable event.