Hey, so I'm getting back into REI. I never did this right before. Lots of shooting from the hip. I want to do this right, finally.
Now I have a small amount of cash in a Roth IRA. Enough for a downpayment on a small multi-unit.
I think I understand I can roll this capital to a SDIRA, but for a buy and hold plan I won't get depreciation if property is held in SDIRA. So maybe SDIRA isn't right? Seems like I'll get killed with taxes if I invest outside of SDIRA. Also, I won't have access to my IRA funds to invest with in that case.
I also don't know about using entities for properties - liability protection, and tax savings.
Do you use entities inside of SDIRA?
I live in FL, so no state income tax. I don't know yet what state I'll be investing in, so there will be outstanding questions.
The goals:
- grow my little nest egg over the next 20 years (I'm 56 now). I'm still learning about what's realistic and possible, so I don't have this number yet
- minimize taxes
- protect liability exposure
- if SDIRA is the right answer, the fees for custodians looked high - but moving the money will means saving my capital against market loss in my current Roth at the next downturn, so maybe the fees pay for the added security and additional benefits of REI.
It's helpful to write this out. I'm not sure how to weigh the value of tax savings compared to depreciation if I go with a SDIRA (if I understand the depreciation issue right).
TIA,
Amy
