Posted by John Merchant on March 17, 2006 at 22:34:58:
Current law is IRA account is NOT susceptible or subject to attachment, even by IRS…it is immune.
City tax lien can attach to any RE, but IRS wouldn’t be able to say that was “recourse” situation that would invalidate an IRA owning RE.
IRA’s for REI - Posted by Jeff
Posted by Jeff on March 15, 2006 at 22:31:35:
I have read everything on this site about this. But this is new to me, using IRA’s. Suggestions on where I can find basics of this subject?
My main thing I am looking for is it possible for other to use their IRA to partner with Me in an investment?
Thanks for any input.
Jeff
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?
trustetc.com - Posted by DaveD (WI)
Posted by DaveD (WI) on March 16, 2006 at 09:29:36:
Those wanting to use IRAs will have to move their IRA funds to third party provider like Equity Trust. A true self-directed IRA. Works great.
Re: IRA’s for REI - Posted by Bob Smith
Posted by Bob Smith on March 19, 2006 at 24:37:29:
Special assessments are basically property taxes, which aren’t debt unless you don’t pay them.