Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

41
Posts
25
Votes
Theresa White
  • Xenia, OH
25
Votes |
41
Posts

Can my SDIRA lend to my husband's SDIRA?

Theresa White
  • Xenia, OH
Posted

Hi BP folks,

So I've googled until I can google no more!  I cannot find an answer to this question:

Can my husband's IRA buy a property with a down payment, where the rest of the purchase price is covered by a private money loan out of my IRA? I get it, I get it...a person's IRA cannot conduct business with their spouse. But what about spouse's IRA? Why would I want to do this particular arrangement, you ask, instead of just pooling the money to purchase outright, which is perfectly allowable?

Because my hubby and I have a significant age gap (I'm younger), and he never saved for retirement until he met me. My IRA is significantly larger than his. So in the interest of growing his IRA faster and provide more options when he is eligible to tap into that IRA, rather than pool my money with his to purchase outright, I was wondering if my IRA could simply be the bank. My IRA collects a competitive interest rate, but his collects all the rental proceeds and captures the appreciation upon the sale.

Thoughts?? 

Most Popular Reply

User Stats

1,318
Posts
703
Votes
Darrin Carey
  • Lender
  • Dayton, OH
703
Votes |
1,318
Posts
Darrin Carey
  • Lender
  • Dayton, OH
Replied

@Theresa White, Joining two IRAs and doing a JV with both of them works really well. My wife and I do that. We also choose the types of deals we put in each IRA so we can get the growth where we want it.

Keep in mind if the IRAs borrow money (must be from someone who is not disqualified), it must be "non-recourse", and you cannot put a personal guarantee on it. A loan may also bring UBIT into play. If it does, you MAY have to file a tax return for your IRA, and pay taxes at the trust rate.

  • Darrin Carey
  • Loading replies...