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Updated almost 8 years ago,

User Stats

152
Posts
65
Votes
Jay G.
  • California
65
Votes |
152
Posts

How to pay expenses / renovate home owned by self directed IRA?

Jay G.
  • California
Posted

... if the IRA runs out of funds to cover those expenses or pay for required repairs, etc.

Example:

IRA starting: $200,000

Purchase property: $180,000

IRA remaining: $20,000

Repairs needed before being able to rent/lease property: $60,000

What are legitimate (IRA-tax-status preserving) ways to get the work done? Assume I have personal cash for the difference, or the credit to get it. There's no issue with getting the extra money required, it's more about what process to use to get the work done when it would exceed available funds in IRA.

I'm not actually in this situation yet, but just trying to think of all the scenarios that could pop up after making a purchase with IRA funds & IRA owning property.

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