Accepted Answer

XXXXXXXX,

You cannot sell your property (or property owned by a company you own 50% of) to your IRA, that would be a prohibited transaction and would disqualify your IRA. Your IRA can invest in Real Estate that is purchased for a non-disqualifying person. For qualified Real Estate Investments, the IRS cannot force you to sell the property to take a RMD. However, when a RMD is missed, the amount will be subject to a 50% penalty.Please note that while I am providing an answer to your direct question, there are many other things to consider before purchasing real estate in your IRA. Certain actions can disqualify your IRA, like personal use of the property, and cause the whole value to become taxable. You will also be looking at ordinary income when you take IRA distributions, vice a capital gain if you sold the property outside the IRA. You also do not get benefits such as depreciation. As you probably already know, only certain custodians will allow your IRA to purchase real estate. Please let me know if you have further questions.

Regards,

XXXX X

Expert:	Mark D
Pos. Feedback:	99.6 %
Accepts:
Answered:	10/29/2009

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MBA, CTEC Registered, CPA Firm Experience with Business and Individual Tax Returns and Issues