Ask Experts Questions for FREE Help !
Ask
    Dilip0104's Avatar
    Dilip0104 Posts: 12, Reputation: 1
    New Member
    		  
    #1

    Jul 24, 2008, 12:08 PM
    Clarification required on Self Directed IRA
    Hi,

    I hold certain funds in my IRA account. I am told that I can invest those funds in the areas I wish to using the Self Directed IRA. Can you tell me whether I can purchase a property valued more than the amount of IRA contributions I have in my account?

    Many thanks for your help in advance.

    Best Regards,
    Dilip.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Aug 8, 2008, 07:48 PM
    Normally, you register an LLC and set up a self-directed IRA. You invest in the self directed IRA or transfer money from your Trad IRA to self-directed IRA. You take your own investment decisions.

    About purchasing property valued more than the amount in IRA, yes it is just like normal property purchase. You give down payment and get rest of investment financed. However, you can not use the property for personal use or for the use of relatives. If IRS finds out that you are using it for personal use, the whole self directed IRA amount will be considered distributed and if you are not 59 1/2, it will subject to early withdrawal penalty.
    Read Your U.S. Tax Return: Traditional IRA and Roth IRA
    Dilip0104's Avatar
    Dilip0104 Posts: 12, Reputation: 1
    New Member
    		  
    #3

    Aug 14, 2008, 07:47 AM
    Hi Mukata,

    Many thanks for the clarification.

    Regards,
    Dilip.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

A Directed Donation is Re-assigned [ 1 Answers ]

A registered charity has an existing operation, with staff and a manager, and a prospective new operation, championed by a member of the board. An engineer has done some preparatory work on the new project and has been owed $10,000 for more than three months. The charity is cash tight. When the...

Clarification Before I Buy [ 2 Answers ]

OK.. Just getting some last minute advice before I run out and spend money lol. I am running a line out to a detached building. It will be coming out of a 200 amp service into a 60 amp breaker sub panel. I will use 6-3 w/gnd (Underground w/ conduit) to do this as well as #6 to run from the ground...

Book from late 80's early 90's directed towards teens [ 2 Answers ]

Hello... Any help would be appreciated, When I was probably 12, 13 somewhere in there so early 90's I read a book that I am sure came from the library at the time. I can not remember the name of this book, but I can remember it is a book I am dying to get a hold of so my child can read it...

Tax clarification [ 1 Answers ]

Hi. I am a green card holder with us income as only gift of shares from my son.I have foreign country income from India as dividends,interest and small business income.All this I am getting in india for several years before I became a residenrt and my foreign income has no connection with any...

Internet search directed to wrong site [ 2 Answers ]

Hi Friends, When I click the results of Live search or Google search, it is directed to wrong site:( , what is the reason and how can I correct it , please can any one help me out in this matter.

View more questions Search