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Question: Is it possible to use a self directed ira to buy property?
(Posted by: on 2011-10-05 07:27:54)
My wife and i are thinking of buying property in Ecuador as an investment (can't do much worse than the stock market nowadays!) and were trying to figure out if it would be possible to use money in my IRA to buy it. What I was thinking might be possible would be to set up some kind of corporation for investments, which I would (if possible) then buy the stock with money from my IRA, which could then be used to buy the property without tax consequences. It would be essentially another investment for retirement- but just not the normal stocks or bonds. That we we could rent it out, with the corp taking in the money, which could then be used for maintenance. If we used it ourselves, I assume that would not be a problem either, since I could pay for our use into the corp in an arms length transaction and so therefore it is not for personal use, so I am hoping that it could be possible to do it. Thanks for the RSVP Eddie- but could you give me some idea as to why or what basis there is a distinction between prop in the us and that outside. I guess my point is that if there was a corp listed on the NYSE whose sole business it to invest in ecuadorian real estate, I see no bar to me buying that stock with my money in my IRA. If that is true, why would I not be able to set up a corp myself, and then buy stock in that company, just as I could with any other, and then have the corp buy the foriegn assets. My IRA would not own the property itself, but just the stock in a corp that happens to buy property in Ecuador. I could even sell the stock to a couple of other people if it is a question about it being a sham or something. Conceptually I just see no problem with doing it thru a corporation, but I am looking to see if I am unaware of some strange law that might apply. Thanks |
