A little explored part of the tax code regarding IRA’s could lead to an expansion in the breadth of your IRA’s portfolio.
Here is a great article from the Commercial Invesmtent Real Estate magazine put out by the Certified Commercial Investment Member (CCIM) organization. Not only can your IRA hold real estate in your portfolio, you can enjoy the same tax deference and income tax deductions you would with more traditional IRA holdings.
One of the reasons this IRA option does not get much in the way of exposure is because it is highly detailed in setup and tracking. For example, while your IRA trust holds the property, you and your family may not utilize the property, any expenses generated by the property are paid out of the proceeds by your IRA, if the property is held with multiple owners expenses and appreciation are divied according to the percent invested.
Have a parking structure in mind that would be a great cash flow generator? Have your IRA purchase and hold it; all of the cash flow will go into your IRA. If it’s a Roth IRA, you are lucky! No taxes on the disbrsement of those funds. In other words, appreciation until the sun explodes! (apologies to Joedy Patrick)
Want to pick up some easy, tax deferred/tax free growth in your IRA? Let’s talk about your IRA becoming a buyer in this market!