Using Roth IRA funds as down payment, not full deal

[Justin P.]

Hello, I've lurked on quite a few of these posts and have found several answers, but I have a couple more questions. I know if I use a Roth IRA to purchase a property, all expenses have to come from the Roth and all proceeds have to go back into the Roth in order to take advantage of tax-free growth. If I combine funds from my Roth with others to make a down payment, can I still get some tax benefits? Let me make an example:

Buy a property $100,000 all in. Use $20,000 from Roth, $20,000 cash, finance $60,000.  If I flip it for $140,000, can 20% ($8k) of the $40,000 gains be put back into the Roth, 50% since it was half Roth half cash that I put in to it, or is there another scenario I'm not thinking of? 

Thank you in advance for your help!

[Brian Eastman]

@Justin P.

You should not mix IRA and personal funds into the same deal, especially with leverage. There are folks who will say you can, especially on an internet forum, but it comes with considerable risk and would be exceedingly complicated.