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Updated 4 months ago on . Most recent reply

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Kevin Sobilo#2 Tenant Screening Contributor
  • Rental Property Investor
  • Hanover Twp, PA
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SD Roth IRA Investing In Syndication - Transfer Depreciation?

Kevin Sobilo#2 Tenant Screening Contributor
  • Rental Property Investor
  • Hanover Twp, PA
Posted

I'm just looking forward to the future when I may wish to invest in a syndication through a Roth IRA.

Correct me if I'm wrong but since the Roth IRA has no tax liability, the depreciation deduction is basically lost.

I'm curious, is there a way in a syndication to shift that depreciation that is of no use to me to another partner who can take advantage of it? If so, is there a way to get some compensation for giving them this depreciation? 

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Brett Synicky
Pro Member
  • Solo 401k and SDIRA Consultant
  • Orange, CA
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Brett Synicky
Pro Member
  • Solo 401k and SDIRA Consultant
  • Orange, CA
Replied
Quote from @Kevin Sobilo:

I'm just looking forward to the future when I may wish to invest in a syndication through a Roth IRA.

Correct me if I'm wrong but since the Roth IRA has no tax liability, the depreciation deduction is basically lost.

I'm curious, is there a way in a syndication to shift that depreciation that is of no use to me to another partner who can take advantage of it? If so, is there a way to get some compensation for giving them this depreciation? 

I’m late to the party but I’ll add something.  Firstly, private lending in an IRA is a great way to go for a couple reasons.  You avoid the UDFI and it can be very passive especially if you invest in a mortgage fund.  DM me if you want me to introduce you to some companies that offer such funds.  

Here’s my late addition.  Figure out how to qualify for a Solo 401k then you avoid altogether UDFI/UBIT on leveraged real estate. Annual contributions are 10x higher than an IRA and the plan has Roth and traditional built in.   Both spouses can participate, doubling the benefits.  Learn more here:   Solo 401k
  • Brett Synicky
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