Inherited IRA Withdrawal Questions

[Joe Wood]

Hey Guys,

I recently inherited a traditional IRA (Non-spouse) and would appreciate additional feedback from those who are familiar with what options I would have. I am looking to pull out about $100k right now in order to purchase some investment properties.

The big question I have is, will I be able to transfer this into my LLC which then can be used as an investment to avoid/defer tax?

From what I understand, self-directed IRA's are able to avoid tax when investing directly into something that is considered an investment.. real estate. Only problem is I cannot do that since I'm not the spouse.

I have spoke with my accountant and he said that we can accelerate depreciation up front in order to avoid the large tax hit initially. Downside is when it comes time to sell, I would be hit with depreciation recapture tax. From what I've read, it would be a maximum of 25%, which still would be better than income tax.