All Forum Posts by: Art Webb

I’ve heard this one mentioned as a good investor resource.  Really looking for a couple best places to find expired listings.  Thanks for any comments !   

Quote from @Brett Synicky:

@Art Webb yes there is.  Unless the loan paid off free and clear for at least 12 months. 

Thank you again !  Art

Follow up Question……when the property is sold the proceeds go into the Roth IRA but is their also UBIT on the sale proceeds ?

Quote from @Brett Synicky:

Quote from @Art Webb:

If I buy multi family comm real estate via a RE LLC company with my Roth IRA does the rent income become UBIT taxable ? If the property is paid in cash and later a mortgage is secured does it impact the UBIT question above ? Thank you for your feedback !

It's true that the IRA will incur UDFI/UBIT on the income derived from the same % leveraged. What's also true is that you can deduct expenses and even depreciation on this same % and subtract the first $1000 before calculating the UBIT. It's true it does scale up to 37% but not until around $12k of income after those deductions. Generally in the first year or more you'll have enough of those to not really incur any UBIT on especially when you factor in cost seg. Don't let UDFI on leveraged real estate scare you away from investing in your IRA, it can still make you a lot of retirement money.

Even better, get some self employment activity and sponsor a solo 401k then no UBIT on leveraged real estate!   

Appreciate all the information and advice.  Like the Solo 401K idea but at 71 yrs a little too late to start a business and earn enough salary to grow a Solo 401K for a real estate purchase.

If I buy multi family comm real estate via a RE LLC company with my Roth IRA does the rent income become UBIT taxable ? If the property is paid in cash and later a mortgage is secured does it impact the UBIT question above ? Thank you for your feedback !

Quote from @Basit Siddiqi:

Investing in Oil and Gas is somewhat of a gamble.

The way that I see oil and gas investments have one of two likely outcomes

A) Lose all or close to all your money
B) Get 10X your investment

To answer your question you can potentially do a roth conversion and offset it with oil and gas investments.

In doing a Roth Conversion the tax due is lost money when paid.  Using that same money instead and investing in oil exploration gets you 85% to 100% tax deduction the first year that eliminates or closely eliminates the any tax due on the Roth conversion.   So with the same money I can either pay Uncle Sam with no return or invest in oil with the same dollars and possibly get a return of something. I will have to pay the depreciation recapture taxes down the road but even paying that will be better than paying up front the conversion taxes. Am I thinking this through straight !   Thanks all !

Also if this is a good strategy do DSTs offer this type of investment and if so any recommendations.  Thank you !

Does anyone have any experience using oil and gas tax deductions (Intangible Drilling Costs: 100% tax deductible during the first year and tangible Drilling Costs: 100% tax deductible) to reduce tax liability against Roth conversions ? Seems way better than giving Uncle Sam tax dollars. Why not invest any non-IRA dollars in oil and gas and get the 100% deductions to apply against your Roth conversion tax liability ? Thanks for any comments !

I'm interested in obtaining a Roth Conversion Calculator that would analyze pros and cons of a Roth conversion vs keeping IRA. Calculator should provide amount of conversion tax payments needed, one or multiple conversion options, Medicare IRMAA impacts, various investment percentages of Roth growth vs IRA growth, and RMD amounts with associated tax bill.

I’ve seen numerous CFPs hawk their services for $5,000 or more.  I understand the potential value to convert but would like to use an outstanding calculator to actually show the value of different conversion options and investment percentages.  Looking for some excellent calculator recommendations ….free or purchase.  Thanks for all recommendations.   Art