All Forum Posts by: Jeff Nash

The typical CPA answer I'll give you is that it depends (on your goals, objectives, etc), but you also need to consider the lending/financing implications. I'd be happy to discuss with you and you might also connect with @Brian Perlman.   

@Whitney Nash can help address any Q&A but it seems on the surface like a doable fact pattern.

That Montana property is not new to you so you it won't be eligible to use as your replacement property for a 1031 exchange.  There are improvement exchanges where additional construction occurs on the replacement property, but since you already own the property that is not applicable.  I would be happy to discuss other options and will PM you.

Taxes are going to be based on it's fair market value at whatever point in time you have a transaction (use it for personal use or sell it).  An appraisal would be used to determine it's relative fair market value so you won't be able to manipulate it. Your age also matters since there is a 10% penalty for early withdrawal before age 59 1/2.   

Here is the BP Tax Directory  - https://www.biggerpockets.com/....  If you have no issue with remote assistance I know most of the folks listed in there should be able to help.

You can never use the home for personal use if it's held in a SDRIA. If you did that the value in the account will be deemed fully distributed and taxable. I am not sure I am following your question either about taxes, but whatever costs are incurred by the property have to be paid by the account and not you personally. Whatever is held in the IRA must be able to support itself on it's own without assistance from the owner. That is unless you make a contribution to the account within the annual limits and then taxes and other operating expenses are then paid as needed.

Anna, you can set up a SDIRA that has checkbook control and owns an LLC where you are a member along with others who want to participate (taxed as a partnership). A nonrecourse loan would be used to finance the purchase of real estate (can't have recourse or anyone acting as a guarantor). I don't fully understand the details of your fact pattern based on what you wrote but would be glad to chat so I'll message you.

@Allison Hodges here is a BP Tax Directory you can review - https://www.biggerpockets.com/... which should be helpful.

@Paul Vail that is a good idea if his intentions are to just expand his investment options universe and is not as concerned with tax deductions currently.  @Tim Jernberg could use an existing Roth IRA and/or the backdoor Roth IRA strategy (considering balances in Traditional IRAs) and upgrade to a SD Roth.