Self-Directed IRA's

[AlbanyWildCat]

Knowing that many of my fellow Paddock posters are millionaires and are savvy with their investments, who has a self-directed IRA and used those funds for real estate purchases?

With us a week out from taxes due and myself wanting to avoid paying a huge amount, I could potentially pay the max to my IRA for last year (approx. $50K) and then use those funds towards the purchase of a rental property (maybe 20%). From there, the questions start.

Anyone?

 

[Deeeefense]

I've hadn't done this but the first thought that comes to mind is keeping adequate and verifiable records of expenses, and revenues. I would suggest setting up and LLC with a separate bank account. The $20K would be contributed capital into the businesses to start and you can contribute more annually if you choose as allowable. At some point in time if you decide to sell the LLC you can roll the funds from the sale into another form of investment.

Talk to you CPA about this.