remove part of a property from a SD IRA

[Gene Hacker]

I have a family member that owns a rental in a SD IRA and is getting to the point where he wants to sell. Is it possible to take only a portion of the property out of the SD IRA each year to minimize the tax implications?

He wants to keep the property but he needs to make the mandatory withdraws. Any ideas?

[Daniel Dietz]

Gene,

I thought I would bump this and see if others would jump in with some good advice.

Take what I have to offer with a grain of salt, as I have just started investing with my SDIRA in a three way partnership with my brother and dad. My dad is 69 and used a traditional IRA, so the withdrawals might soon be an issue.

The basic advice he got was this;

1) He ALSO has traditional IRA funds outside of his SDIRA. So say if he needs to draw 10K out the first year, that can be from ANY of his IRAs, so he could simply draw it out of his non SDIRA funds by selling some mutual funds etc....

2) In our case, we have our 'reserve funds' in our SDIRA as well as the rents that go into there (we paid cash, so no mortgage payments etc). So the point is, does he not have some funds from rents and such that he could take out without having to sell etc......

Just a couple of thoughts........

Dan Dietz