IRA DISTRIBUTION QUESTION (buying real estate) - Posted by Jason
Posted by Jason on March 15, 2002 at 20:22:12:
I have a property I am negotiating to buy from a bank who has it in there REO due to a foreclosure. My private investor can supply the funds to buy the property ($170,000.00) from his traditional IRA. The problem is that the distibuted funds from the IRA must be back in the IRA plan within 60 days to not trigger capital gains tax on that $170,000.00. My question is: If I did not have the initial $170,000.00 back in the IRA account by the first 60 days, could I (upon the private investors approval) use a second distribution of ($170,000.00) to rollover the first 170 to satisfy the 1st $170,000.00 IRA distibution as well as give me another 60 days before the capital gains tax (on the second $170,000.00) is due back in the account?? My investor has agreed to this (if it is allowable). That is what I am asking!!?!?!? The reason I am aking this is that I feel strongly that it will take me more than 2 months to sell the house (especially with no seasonning, owning the house for such a short time) and I don’t want to penalize my investor. There is not enough time for my investor to switch to a self directed IRA account (like Mid-OHIO SECURITIES) because the property will sell quickly!!! Several offers have already been made!!!