IRA Property refinance to add rental Unit

[Dane Hebert]

I have a property inside my IRA that has no debt. I would now like to add a unit to the single family rental. Since this would be a non-recourse loan, I'm assuming the entire property would attach to the loan. So I'd like some advice:

• Should I do a refinance inside the IRA or move the property out of IRA and suffer tax consequences? I'm 61, so no penalty tax would apply. However, I'm working regular job and am in higher tax bracket.
• Can someone provide me with lender options for IRA refinance loans?
• Are there additional complications with doing construction in an IRA with regards to construction loan, etc?
• If I choose to distribute property out of IRA, how will the distribution be valued for Tax purposes? It's generating nice cash flow and good appreciation, so I want to keep the property.

Any advice will be much appreciated.  Thanks.

[Cameron Skinner]

I don't think there is any way to get a loan inside an IRA without triggering UBIT tax, but if you can qualify you may be able to open a solo 401k and roll your IRA into the solo 401k which will allow debt on rental real estate as long as you don't personally guarantee the loan, you might want to reach out to @Dmitriy Fomichenko and see if you can quality.

I would avoid the distribution if at all possible 

Hope this helps, Good luck