Ep 61 Real Estate In An IRA Could Spell Trouble
Manage episode 407247555 series 3559080
In this episode of the Red Barn Financial Podcast, Sean Moran explains the reasons why you might not want to put real estate in your IRA.
You will find people pitching the idea of putting a real estate investment into an IRA, but there are many drawbacks from this strategy.
First, real estate provides many tax beneficial treatments, but when you put them into an IRA you lose some of them. For example, you can't depreciate the property, which means you lose a valuable tax benefit. Additionally, you lose capital gain treatment, which means you pay more taxes.
When you come up on RMDs or decide you want to take the investment out of the IRA it becomes quite difficult and leaving it as a legacy later on is leaving a big tax bill that could have been avoided.
Here are things to consider before investing in real estate within your IRA and why you may not want to do this.
Looking for a financial advisor? Schedule time with Sean Moran, MST - Financial Advisor at Red Barn Financial. Learn More at www.redbarnfinancial.com
Disclaimer: This podcast is not tax, legal or investment advice. Everyone's situation is different. Consult your financial advisor prior to making any major financial decision.
Looking for a financial advisor? Schedule time with Sean Moran, MST - Financial Advisor at Red Barn Financial. Learn More at www.redbarnfinancial.com or schedule a meeting at Calendly.com/spmoran
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