Can I really buy real estate in my IRA? YES!

In 1974, Congress passed an Act creating IRAs. The Act (as amended) allows individuals to save and invest for their retirement. A key feature of an IRA is that the earnings inside an IRA are tax deferred (or in the case of a Roth IRA possible tax free). The Act lists only three prohibited transactions. (Prohibited transactions may not take place inside an IRA.) The prohibitions are: Funds inside an IRA may not be used to buy:

• Insurance (Life or health)
• Collectables (Such as wine, art, stamps)
• There may be no dealings with a disqualified person or party (more on this later)

Hence, an IRA may invest in real estate: 

• Investment real estate is not on the prohibited transaction list.

We estimate that there are about one million IRA's currently holding real estate as an investment.

How can I be sure this is legal?
You may contact the IRS to obtain a copy of "IRS Publication 590". In that publication look up the section titled "Prohibited Transactions"

Why haven't I heard of this? See "Why haven't I heard of this of this " on this web site.