Is the profit you get from a flip Tax'ed?? - Posted by Bruce

Real Estate Investing
1

Posted by Reif on March 29, 1999 at 24:46:03:

I’ve got $2000 in my Roth IRA.

My IRA buys a mobile home for $2000 cash, and sells it for $1000 down, 8K note at 12.75% interest.

The total amount after five years is $11,860.14 - tax free when I retire.

Reif

2

Is the profit you get from a flip Tax’ed?? - Posted by Bruce

Posted by Bruce on March 24, 1999 at 18:13:42:

Is the profit you get from a flip Tax’ed??

just wanted to know that i would apreceate it alot if i could get a response to my question

loooooove this site i am hook to RE investing

3

No Tax - Posted by Bud Branstetter

Posted by Bud Branstetter on March 25, 1999 at 07:33:29:

If I buy and sell through my Roth IRA the profit will not be taxed if I wait the appropriate time.

4

Re: No Tax - Posted by ScottE

Posted by ScottE on March 25, 1999 at 10:38:49:

How do you work that, Bud? I thought money that went into a Roth was after tax dollars.

Thanks
Scott

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Re: No Tax - Posted by Bud Branstetter

Posted by Bud Branstetter on March 25, 1999 at 10:55:47:

You are only allowed to put $2000 a year of earned income into an IRA but you are unlimited in the amount it can earn. I don’t need cash to do a flip or L/O. Very little for a Lonnie deal. A particpatory loan can take care of the rest.

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Re: No Tax - Posted by ScottE

Posted by ScottE on March 26, 1999 at 12:03:44:

Bud,
Thanks for the response, but I am still not following you(I’m a little slow!).
I’m clear that you can only put $2k in an IRA per year, but the rest I don’t get.
Can you help clarify?

Sincerely,
Scott