Real Estate IRA Allowable Activities

Jul 17, 2018

real estate ira

What activities may the owner of a real estate IRA perform?

Owning Real Estate in an IRA can be a great way to earn tax-deferred or tax-free money. Many Real Estate IRA accounts grow very large.

When investing in real estate, IRA investors are allowed to do the following:

Investors are always allowed to perform “administrative” IRA investment functions. Examples of administrative activity:

  • Select the investment property
  • Read and review documents
  • Determine the plan; is this for buying and renting?
  • Is rehab work necessary? What is the extent and type of the work required?
  • Hire the people to perform the labor supervising the project
  • Select the tenant
  • Collect rent
  • Track income and cost

In addition, your IRA can partner with other entities (at the beginning of an investment only).  If you, personally, are a partner, benefits must always be “percentage invested = percentage of benefit.” If an IRA invests 42% of the money, for example, your IRA receives 42% of the benefit. Your IRA may partner with another IRA, another individual, or in yourself. 

 

The IRA Club does not make investment recommendations. The IRA Club offers no investments products or planning services. Before making an investment, consult an attorney, tax professional, or financial planner.