Avoiding Tax All Together by Using 1031 Exchange in an IRA
Friday, April 29
A 1031 exchange allows tax payers to defer taxable gain on exchanges of like-kind assets, such as real estate for real estate. Because money in an IRA can generally flow tax-free from one asset class to another, retirement account holders rarely need to employ a 1031 exchange.However, some IRAs m...
UDFI, UBTI, and UBIT - What’s the Difference, and Why Does it Matter?
Thursday, February 25
Some retirement investors are hesitant to invest their IRAs in assets that may incur UBIT, or Unrelated Business Income Tax, because they view it as a penalty or as excessive tax. But in the case of retirement accounts, incurring UBIT means the account is making money. UBIT is not a penalty, but ...
Can I hold Commercial Real Estate in an IRA?
Tuesday, December 16
Can I hold Commercial Real Estate in an IRA? All IRA holders should be aware that any type of real estate can be held in an IRA for investment purposes, including commercial real estate. If you haven’t heard about investing in commercial real estate with an IRA before, it’s probably because most ...
Investing with an SDIRA - Understanding UBIT, UDFI, and UBTI
Thursday, August 28
Below you'll find some selected excerpts from IRS publication 598. Please note that these are pieces of the text that I think will help you understand and describe UBIT concepts.The tax on unrelated business income applies to most organizations exempt from tax under section 501(a). These organiza...
How-To Become a Mortgage Lender With IRA or 401k Savings
Monday, June 16
Most investors aren’t aware that the IRS allows an IRA and other qualified plans to make loans without penalty. In fact, the tax benefits associated are also maintained for additional savings opportunities. IRA lending gives you the ability to loan retirement savings to non-disqualified individua...
WAIT - My IRA Can Get A Mortgage And Buy Real Estate?
Tuesday, June 10
By: Catherine WynneOne of the biggest roadblocks in the purchase of real estate with your IRA is the question of leverage. Leverage is one of the attributes of real estate investment that may enhance the rate of return. After all, having the bank as a partner, a large partner, allows you to buy s...