Self-directed IRAs are a whole different way of deferring gains. What people are doing with self-directed IRAs is that they’re accumulating wealth inside of their qualified plan so that all of that accumulation goes untaxed while it’s inside of the plan. But there are limitations on self-dealing. You can’t derive personal benefit from your self-directed IRA. Therefore, you can’t really occupy the properties that are owned by your self-directed IRA. You may not even be able to loan money on a recourse basis that benefits your IRA. Anyone doing a transaction with their self-directed IRA will need to encircle themselves with good tax advisors because there are a number of rules that limit what you’re able to do.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2023 Copyright Jeffrey R. Peterson All Rights Reserved