Posted by DougO(NM) on May 10, 1999 at 07:49:04:
The whole point of running the deal through the IRA is so IT profits, not YOU personally. This isn’t a vehicle for putting grocery money in your pocket today John. Sorry. (Unless of course you are retired )
Doug
Investing Through Self-directed IRA’s - Posted by John Katitus
Posted by John Katitus on May 10, 1999 at 02:47:54:
When real estate investing with self-directed IRA funds, is it permissible to personally profit along with the IRA profits? For example, if you bought a house and renovated it using IRA money, would ALL of the proceeds have to go back into the IRA or could you pay yourself for your labor and effort? Thanks.
Re: Investing Through Self-directed IRA’s - Posted by Hugh Bromma
Posted by Hugh Bromma on May 11, 1999 at 13:38:17:
All of the comments are correct. You may also own 50% of a company which does re-habs (provided you are not an officer) and rehab that property. If you are an officer (or GP) you may only own less than 10%. This also applies to an equity interest in such a company. Visit our web site at www.real-estate-ira.org for more information.
Re: Investing Through Self-directed IRA’s - Posted by Bud Branstetter
Posted by Bud Branstetter on May 10, 1999 at 22:06:42:
You can not legally pay yourself for your labor and efforts. It is not worth it to even try and cheat through a corp. or other entity. You can be reimbursed for materials or other costs. Many of the self directed trustees prefer to have it done thru a contractor as it can look like a distribution if payment is made directly to you. Legally you can invest and share on a prorata basis with yourself. But again many of the trustees do not allow that approach.
Yes, - Posted by David Alexander
Posted by David Alexander on May 10, 1999 at 14:38:07:
Yes, from what I understand you can partner with your IRA. In other words it puts up the money and the profits are split in whatever fashion. You, or your Corp can’t however do a deal and then sell to to your IRA, that would be self dealing.
David Alexander
Re: Investing Through Self-directed IRA’s - Posted by Rich_PA
Posted by Rich_PA on May 10, 1999 at 12:54:29:
If you hired an outside company to do the fix-up work, THEY could make a profit, right?
If you worked FOR THAT company, you would be payed by THEM for your labor, right?
So, If you started a company, not in your name, you could get the labor & materials-profit money.
I don’t think I would do it as a sole-proprietorship, even though the chances of anyone ever checking on you are small.
Rich_PA