Can a retirement account hold private real estate?
A plain-English explainer. It will not tell you what to do with your account. It will tell you what to ask.
Educational guide. Not an offer to sell securities. For accredited investors; verification required before any investment. Investing involves risk, including loss of principal.
Three things to know first
- Self-direction: an IRA usually has to be self-directed, at a custodian that permits private investments, before it can hold one.
- Prohibited transactions: you cannot do business with your own account. No buying from it, no working on its property, no benefiting personally.
- Leverage: if an investment uses a mortgage, part of its income can be taxed inside the account. Ask your CPA how that applies.
Urban Sun Capital is not your tax adviser or investment adviser and does not recommend opening, rolling over or moving any account.
Tax note. General education only. Not tax, legal or investment advice. Tax rules change, and their effect depends on your situation. Ask your CPA before acting on anything here.