How To Buy Rental Property In An IRA

[@justinevelayo3180]

Thank you for sharing this knowledge on self directed Ira! And the mistakes to avoid!! Your content is amazing and so helpful!

[@ClintCoons]

Glad it was helpful!

[@user-uw9nw8bv4o]

Hi Clint. I’m a little confused. I found this video b I watched one you did 9 years ago saying that self directed iras we’re bad news. Did things change? Thanks so much

[@stevem0601]

Clint, always great content. However, I am conflicted as you make mention in this video about SDIRA and you have other videos discouraging use and to use solo 401k. I have been leaning towards opening solo 401k, but eligibility has me twisted. If my business is real estate investing, then as I understand it, I would not qualify because rental income is considered passive income. Is that correct? Also, as part of my real estate business I could be doing part time general contractor work AND collecting rent. thus I would be paying myself (and my wife) a wage. Would I then qualify for a solo 401K? Thanks, Steve

[@warrengould4051]

Great video. How are the cash flow, expenses, income, losses, depreciation, and taxes handled for the rental property in the LLC? Also, can you maintain a traditional IRA along with a SDIRA?

[@ClintCoons]

They all flow through to the SDIRA for tax purposes. Thus, if your IRA does not have any debt on the property then it is not relevant. Yes you can have both a traditional and SDIRA. You can have as many IRAs as you want you only limit is on the annual contribution which is in the aggregate.

[@technotrix6504]

Who is a good company to contact for the self-directed IRA's?

[@davidmckinney5067]

Great information, Clint. Is there a strategy for avoiding UBIT in these structures? As I understand, leveraged property will generate UBIT.

[@ClintCoons]

It does generate UDFI but remember you can use your depreciation to offset the income. The only way around UDFI is to invest through a solo 401k. If your money is in a ROTH then you are stuck but if its in a traditional then you can roll it into a solo and avoid the UDFI.

[@ElLeNoir..ELconomics]

Let coach Clint Cook!!!!!!

[@zehuazhou3390]

if I do this and receive a tax form such as 1099-INT from the LLC’s bank account, or a 1099-MISC from my property manager, shall I just disregard these tax forms since they are generated against the EIN of the LLC, which is owned by the tax deferred IRA?

[@ClintCoons]

Your IRA will need to file a tax return because it has UBTI. These will be included with your return

[@Alaska_Engineer]

…and how would we withdraw or dissolve the IRA at a later date?

[@ClintCoons]

You would transfer the property out of the IRA

[@nguye1971]

Great info as always. Thanks Clint Question- how to get money from IRA to pay for LLC setup costs?

[@ClintCoons]

You instruct your IRA custodian to wire the funds to the company setting up your IRA LLC.

[@AmyMilliken-j5j]

Can I buy property in another country with my self-directed IRA?

[@ClintCoons]

Yes

[@geraldbennett7035]

Are you talking paying cash for property or borrowing. Sounds like a bunch of legal fees will be incurred.

[@ClintCoons]

Either one works