All Forum Posts by: Greg Wright

Thanks Wayne good to know. 

Thanks Mike,

 I rehabbed in the past but have not done it in several years, just trying to catch up on changes. Do you know anything about the Wolcott market seems to be a lot of houses sitting for 200 days plus?

Yes that is correct, the business roll over sounds interesting but seems to be complicated with reporting rules and expensive start up $ 5,000 along with monthly fee.

How are flippers in CT handling title seasoning issues. I would assume your retail buyers are mostly first time home buyers using FHA or similar programs which have the restriction of no transfer for 90 days. Can a Land Trust be used to get around this?

Martin,

Did you finish the first one I know you were shooting for 4/1. How did you make out?

Thanks for all the responses. It seems the self directed IRA is best suited for buy and hold. From the responses flipping is looked at it as a ongoing business by the IRS subjecting yourself to UBIT, 10% early withdrawal penalty and then regular taxes on top of that. Seems very little profit left if any after all the costs.

Jon,

Can I keep that $13771.30 out of the IRA.

Thanks for all the advice. Does anyone know if the UBTI tax is on top of regular income tax? Example I rehab a house sell for $20000 profit pay UBTI tax do I still owe regular income tax on the $20000?

Has any rehabber used a self directed IRA for rehabbing houses? How do you handle the profit. Does it have to go back into the IRA which would seem to defeat the purpose as you couldn't make any money to live off. If you keep the profit out does it get taxed at a higher rate than normal or is there a penalty? Thanks for any input.

Ok thanks good luck.