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Updated over 10 years ago on . Most recent reply

User Stats

54
Posts
11
Votes
Jim Bentley
  • Investor
  • Oklahoma City, OK
11
Votes |
54
Posts

Trading sweat equity in SD IRA

Jim Bentley
  • Investor
  • Oklahoma City, OK
Posted

I'm pretty sure I know the answer to this, but maybe not.  

I have 2 rent houses in a SDIRA.   I have someone whom I've been paying $25 do go over and do minor things like change the air filter, unclog a toilet, etc, since I'm not allowed to do this myself.  

I know someone else locally who's in the same boat.  We have the same genre of rentals.  Would it be permissible for he and I to work on each other's properties for free for these minor things?  e.g. he changes my air filters every three months, and I change his every three months.  When my renter calls with a clogged bathtub, I call him, and vice-versa.

Most Popular Reply

User Stats

332
Posts
107
Votes
Loren Whitney
  • Investor
  • North Idaho
107
Votes |
332
Posts
Loren Whitney
  • Investor
  • North Idaho
Replied

This will depend on how risk tolerant you are. One way is perfectly fine if they aren't disqualified but both directions could be considered an arrangement.

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