Avoiding Capital Gains Through A Self Directed IRA
I have a taxable gain of over a 150k from the sale of an investment property. I would like to defer the gain. I have heard about a 1031 Exchange, but I was sondering if it was possible to also defer the tax by putting it into a self-directed IRA? Would the recaputure of depreciation also be avoided by doing this?
Please excuse my error in my previous post and replace the word "Avoid" with "Defer"
I assume that you already own the property. You can not transfer the property into your IRA if that assumption is correct. The IRA would have had to already acquire the investment as an asset within the IRA. The only type of contributions or additions that you can put into the IRA are cash contributions.
Let me know if you have any additional questions.
[addsig]
Check with Equity Trust. They are the only compnay I know of that does the self-directed IRA's/ You can do an internet search for their site, or try trustetc.
Anyway, you can go Roth or traditional IRA. beleive you have to purchase the property with the IRA, in order to turn the total profit back tot he IRA. HOWEVER, you may use a portion of your proceeds to start an IRA. Again, consult with them, but I would think if you are registered as a business that you could do a SEP-IRA, and be able to contribute a larger amount that the standard $2000.
Sounds interesting I will check into that. Thank you for your responses
You can buy real estate with $ in your 401(k) what you need is a pension plan designer and an administrator with experience in this specialized area.
Or you could, using IRA, SEP-IRA, SIMPLE IRA, and ROTH IRAs and* pension Plan, put a LOT more than , current annual $3000 of this money into tax-qual. plans, where it will continue to work & grow tax deferred, or in case of ROTH, tax free.
*As IRS Pub 590 will show you, and you can find and print it yourself, on IRS site, it's completely legal for an individual to start and use several kinds of IRAs simultaneously.
I have clients currently contributing many thousands of $$$ into their IRAs (several at once) and pension plans, so they're sheltering LOTS of $$$.
I'm sure Wm Exeter could tell you the same thing.
Best wishes.
John Merchant
Quote:
On 2003-08-18 18:03, wexeter wrote:
I assume that you already own the property. You can not transfer the property into your IRA if that assumption is correct. The IRA would have had to already acquire the investment as an asset within the IRA. The only type of contributions or additions that you can put into the IRA are cash contributions.
Let me know if you have any additional questions.
I think he was saying he wanted to put the profits into his IRA and then invest it in a NEW real estate deal.