Real Estate and IRAs | Ed Slott and Company, LLC

Real Estate and IRAs

Is it possible to have an iRA invested into Real Estate and how does it work, if possible with RMDs?

Yes, this would require transferring all or part of an IRA to a self directed IRA custodian who will hold real estate in an IRA. All expenses associated with the property must be paid from the IRA including taxes, insurance, repairs, utilites, legal, appraisals etc. Periodic appraisals might be required to document the year end value of the property which the custodian must report to you and the IRS and is used to determine RMDs. If you have other IRA accounts, your RMD for the real estate IRA can be withdrawn from the other IRA, but if this is your only IRA, you will need to have liquidity to meet your RMD. Obviously, any depreciation or other tax benefits of real estate holdings will not be available if you hold the property in an IRA.

 

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