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Updated over 5 years ago,

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2
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George Knight
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IRA/LLC vacation rental property question

George Knight
Posted

My wife and I have a few rental properties and are interested in purchasing more. Today, we toured a property that would make a great, unique vacation rental property. We are currently in the process of buying another triplex and don't currently have the down payment in our checking account to also purchase this potential vacation rental property. My wife has enough in one of her rollover IRA's to either make the down payment or purchase the property outright through a self-directed IRA/LLC. The problem is that we would eventually like to own and stay in this property. Is there any way that next year (after we save up for the down payment) that we could somehow personally purchase the property from our IRA/LLC? Is this always considered a transaction between disqualified individuals, or does anyone know a way that it can done? We plan to talk to our CPA and lawyer, but I wanted to see if anyone here had any feedback.

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