Re: IRA’s for REI - Posted by nhs76
Posted by nhs76 on March 17, 2006 at 10:49:12:
Mortgage debt is a problem or at least a nuisance for houses owned by your self-directed IRA, but that is at least a well-understood phenomenon.
However, regarding IRA-owned properties, I have wondered about other types of liabilities and whether they are considered “recourse debt” that will cause problems.
For example, if a contractor files a lien on a house owned by your self-directed IRA, e.g. in a dispute over overbilling on a rehab job, could the IRS interpret the property as a “debt financed” asset and somehow either invalidate the IRA or make you pay UBTI tax?
Could a city special assessment for new sidewalks be considered a recourse debt in this manner?
For that matter, could the IRS file a lien on your IRA-owned house regarding something completely unrelated, and consequently also say that you had a debt on this asset?