IRA Investing into Real Estate

[David R.]

I've set up a self directed checkbook LLC IRA. So I am now able to invest my IRA retirement monies into real estate. There certainly are many stringent specific rules that are applicable. Such as you cannot stay in the property itself, or have any family members benefit from it. My question is once you hit retirement age, how is the property extracted from the IRA ? If you buy a $500,000 property that appreciates to 1 million, you would be paying income tax on the $1 million I presume. How would the fair market value of the real estate be assessed? Would you be able to buy it out of the IRA before retirement ? Does anyone else do this ?