Individual retirement account or arrangement is a financial
Individual retirement account or arrangement is a financial device to the retirees that provides tax advantages for retirement savings.
Do You Own Rental Real Estate in Your IRA (individual Retirement Account)
You may remember Shirley and Neil, they have many investments in their self directed IRA, and these investments were starting to pay off. Cash was starting to accumulate in their IRA, and they decided to take a holiday in the same resort that they owned timeshare/condo in. As we mentioned last time we wrote about Shirley and Neil, they could not stay in their own condo because it would have been a prohibited transaction.
Well anyway Shirley and Neil were really enjoying the vacation, and one night they were sitting having a few drinks when they overheard the couple at the next table talking about an old fellow who had died, apparently the old man had a local property which he had not visited for a fair time, and the people at the next table were wondering what was going to happen to the property. Neil leaned over and told the people that he had overheard them talking and was wondering where the property was. The couple at the next table were surprised but friendly and gave him the address and directions to the property.
The next day Shirley and Neil left early to take a look at the property, Shirley turned to Neil and said “you realize we can’t afford to buy any real estate at the moment, don’t you?” Neil looked at her and said. “Don’t worry , it’s not for us, We are going to put this real estate in an IRA.”
Approaching the house they were a little taken aback. The paint was blistered and cracked, and the yard was a mess. Shirley was disappointed until she walked around the corner and saw the breathtaking views the property had. They quickly saw the possibilities the house presented. Neil had a good look around and determined what he thought was a good price, after taking off the cost of doing it up. Shirley turned to Neil and said “Darling, do you own rental real estate in your IRA.” Shirley and Neil decided there and then they would keep the house if they got it and rent it out.
Neil spent the next morning tracking down the owner, and told them he could put put a deposit down, and give them a note for the rest of the purchase price. After some discussion they decided on a larger deposit, and the remainder paid of in thirty six months. Shirley called their IRA custodian and arranged for them to draw up a mortgage and note and sent to the owners with the contract draft. After the documents were approved, she directed them to sign the documents. Shirley and Neil’s IRA paid the deposit and borrowed the remainder through owner financing. As Neil said. “It was one way to own rental real estate in your IRA.”
Shirley and Neil’s IRAs had some outstanding loans maturing soon, and they knew they would be able to meet the mortgage repayments, plus pay for the repairs to the house. Six months later Shirley and Neil were happy, as the rental on their new property was paying much higher returns than they had expected, their repair bills were less than expected, as the repairs were mainly cosmetic, and the real estate manager of the property sent them a letter telling them the property was worth eighty per cent more than they had anticipated. The only drawback as far as they were concerned was the fact they had to pay a tax called UBIT on their part of the deal that was Debt Financed Income. But as Shirley reminded Neil. It was one way to own rental real estate in your IRA.” All in all, they thought that they had a wonderful and profitable holiday. Indeed they smiled all the way to the bank.
Again if you find this too hard to understand, or you can’t be bothered with all the rules and regulations, there is a simpler more TURNKEY solution to investing in real estate with your IRA. Just go to the url at the bottom of this article and thenceforth to my website, there you will find more information.
Gordon Hall is an ardent reviewer of IRAs and other retirement funds. Visit his website now at http://www.double-your-ira.com to discover which retirement funds Gordon recommends after far ranging and extensive comparisons.
Is There Asset Protection with Your Retirement Account?
Contact Me If You Need Advice Or Guidance (totally free and no hassle): john@pgiselfdirected.com (602) 684-2922 Learn how and if your retirement assets are protected from creditors….and how a sneaky little provision with an IRA can make you susceptiple to creditors.
Can the IRS garnish money out of your ROTH IRA account?
Someone just recently asked me this question, in passing. They asked if they have an IRS lien, can the IRS take money our of their ROTH IRA account? I’m trying to google it but couldn’t find much useful information.
Benefits of Setting Up an Individual Retirement Account
There are a variety of ways to save for retirement these days and opening up an individual retirement account, or IRA, is one of them. If you are surveying your financial options with regard to saving money for your later years in life you will have undoubtedly come across the option of an IRA. There are a few distinct benefits to using this type of financial savings tool to put your money away to be used for a rainy day.
Benefits of the IRA
One benefit of the investment retirement account is that it provides a safe place to keep one’s funds for a later day. It is in a compact setup so that you can hold the money and know that it will be there when you decide to make use of it. This is an extremely important benefit as it keeps it separate from savings and checking accounts and is reserved for the sole purpose of being a nest egg for the future.
Another benefit of the IRA is that you can often hold off on paying taxes until a later point in time. This is beneficial in that one may not have the money for taxes in the beginning but upon retirement the tax money may be more readily available. Those who take advantage of saving money via IRAs will find that this tax incentive is a good one. In addition to putting off paying taxes until later some individuals may be able to forego paying taxes altogether if they qualify under a certain category. More information regarding these tax benefits can be received from your financial advisor.
An additional benefit of having an IRA in place is that it will often provide financial self independence for the IRA holder. As opposed to social security and retirement benefits through your employer, establishing an IRA will often bring a much greater amount of money to the holder thereof. Knowing that you have this account in place will allow you to plan adequately for the future.
Choosing the Right IRA
There are a few different types of individual retirement accounts. Some of the more common ones include traditional, Roth and SEP accounts. In order to best choose the IRA which will work for you and your future you should do a couple of things before selecting a certain one. First, read up on the different types of IRAs to see what each one is truly about. Having this background knowledge is the first step to take before speaking to anyone regarding this type of account. Once you have the requisite background information the next step is to contact a financial advisor who can walk you through the various accounts, look at your finances and offer advice as to which one is best for you. The last step is to choose an individual retirement account and be well on your way to financial freedom in the future.
Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on IRA comparison and Compare IRA Brokers at http://www.iracomparisoninfo.com
value of an ira. in an individual retirement account valued at 53900 ,a couple has 500 shares of stock , some?
I am having trouble solving this please let me know how to find the answer?thanks:)
More Ways of Making Money in Your Roth IRA (individual Retirement Account)
A canny fellow I know saw that a particular piece of commercial land was up for sale. It was in a good location and knowing that a chain store was in the market for land for a new store, he put the piece of commercial land under a purchase option in his self directed Roth IRA. He then approached the chain store management and after some negotiation sold them the piece of land. On closing day his IRA custodian received two sets of documents, one for the purchase of the property and the other for the sale of the property. He made a reasonable amount of money for his self directed Roth IRA and he was quite happy with the deal. A note of caution though, if the property had been flipped inside his IRA, he would have been liable to pay ‘unrelated business taxable income’ or UBIT taxes on his gain. Even if he had had to pay taxes on the deal, he still would have made a good amount of money on the deal.
Another friend of mine made money for his self directed Roth IRA, by buying a house that had partially burnt down. The insurance company had written it off and paid the owner full settlement. The owner was now selling it at the lot price, as he had bought another house. My friend knew a fellow that rehabbed houses, and he got in touch with him. The fellow said he was interested, but he was in the middle of rehabbing a house, and he wouldn’t be able to buy another house to do up, until he had sold the house he was working on. My friend said this would be OK, and agreed to keep the house until this fellow was ready. In the end my friend had to wait six months before the fellow was able to buy it. But the wait was worth it, my friends self directed Roth IRA made a nice little profit on the house. And that was another occasion that my friend walked away rubbing his hands together with glee.
Buying and selling property is not for everyone, if you would like a simpler, more TURNKEY solution to buying real estate, by using an IRA. Go to the url at the foot of this article, from there to my website. You will find much more information there.
Gordon Hall is an active participant of a national network of professional writers who advocate socially conscious real estate investing through the use of retirement vehicles such as IRAs, 401Ks and other retirement assets. For more information, or to get involved, please visit the following http://www.double-your-ira.com
