2006-08-06 09:20:46 · 3 answers · asked by bicky w 1 in Business & Finance ➔ Taxes ➔ United States
I don't understand your question. Generally, you can use up to $10,000 as a first time home buyer without penalty, but you will owe taxes on it. If you are married, your spouse can use $10,000 from their own IRA. If you care to clarify what you're asking people can be of more help.
2006-08-06 13:22:59 · answer #1 · answered by misslabeled 7 · 0⤊ 0⤋
Be careful with this one. Assuming that you're not making a distribution for a first time home buyer, you're walking on some pretty thin legal ice. There are some prohibited transactions for IRAs: you can't borrow money from it, you can't sell property to it, you can't use it as security for a loan, and you can't use it to buy property for personal use (present or future). The IRS has some strict regulations regarding "self dealing" with IRA assets. That said, buying real estate for an IRA can be done, but I think it's going to be difficult to find a realtor who can handle the necessary paperwork to set up the property with the IRA as owner. If you want real estate in your portfolio, maybe you should consider a REIT. It might be a bit easier to get through the transaction.
2006-08-07 05:43:03 · answer #2 · answered by SuzeY 5 · 0⤊ 0⤋
You'll need to change your IRA into a self-directed IRA with a company that would allow you to be in charge of where you'll like your money.
Do a search on the web for self-directed IRA & real estate.
2006-08-06 12:46:05 · answer #3 · answered by El_Nimo 3 · 0⤊ 0⤋