Does anyone know what IRS Publication to see ?
2007-01-06 02:29:29 · 2 answers · asked by BRIAN 1 in Business & Finance ➔ Taxes ➔ United States
You can, but why. You can't invest in any real estate that is personal use to yourself. Perhaps if it was raw land it would be OK. You can't have debt financed income in a ROTH IRA or any IRA for that matter. It would subject any income to a 35% unrelated business income tax, even in a ROTH.
If you can pay cash for they property then the unrelated business income tax would not apply.
2007-01-06 03:37:08 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
Yes, it is possible to invest in real estate inside an IRA. However, there are plenty of landmines if you are not careful.
Don't know a specific IRS reference, but there is a good, short summary of the things you should consider at the Fairmark website.
2007-01-06 03:34:02 · answer #2 · answered by HandyDan 3 · 0⤊ 0⤋