Chart from Entrust 2018 Report
What is a self-directed IRA:
A Self-Directed IRA is a traditional or Roth IRA in which the custodian permits a wide range of investments that are allowable in retirement accounts. One of these alternative options, real estate investments, is appealing to many people who consider using a Self-Directed IRA to purchase rental properties or property flips.
Perhaps the biggest benefit of using a Self-Directed IRA to purchase real estate is found in the potential tax benefits. As is the case with any investment in your IRA, you benefit from tax-deferred income until the day you take withdrawals, or if your investment holdings are in a Roth IRA, your investment gains get to accumulate tax-free and you can withdraw it tax-free. You still must wait until you reach age 59½ to withdraw your funds without being subject to an early withdraw penalty and having that included as ordinary income on your tax return.
But active investors may buy, sell, or flip properties and move funds from one project to another and still maintain the tax-deferral status of the IRA.
Another benefit of owning real estate in an IRA is familiarity. Investor interest is often sparked by global market uncertainty, and this can lead investors to stick with more local investments. Self-Directed IRAs provide you with an ability to invest in investments that you know and understand.
Ask us about 1031 Exchange:
Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes outside of a tax-deferred retirement account.
Our partners will work with the most experienced and first-time investors to ensure that your transactions meet all tax guidelines to build your portfolio. The Florida Gulf Beaches is one of the best areas for real estate investment. Gulf Beaches Home will help you in your search for the right type of investment properties suited to you.