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Updated over 10 years ago,
Can we use husband and wife SD Roth IRA's in one property?
My husband and I each have a SD Roth IRA. Each of these owns an LLC which is set up for real estate investing. IRA #1 was used to purchase tax liens which have now resulted in two properties being owned by the SD IRA. IRA #2 was used for note investing which will be paid back this month.
Question -- can we use money from IRA #2 to help pay for repairs that will be needed in the properties owned by IRA #1? We already track every penny of spending so we would know exactly what percentage came from each account in order to divide up the proceeds later on.
If that is OK then does the same approach apply if there is a net loss? We divide up the cash we get from the sale but it may not cover 100% of what went into the deal.