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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I have considered investing in Real Estate rental properties

Customer Question

Hello . I am Bill Rector. I have considered investing in Real Estate rental properties through a self directed IRA, but the self directed IRA looks a bit complicated. I am concerned that it would be a tax filing and accounting nightmere? However , I may be wrong. Do you reccommed or not recommend a self directed IRA for Real Estate investments that would be rented out?
Thank you,
Bill Rector
Submitted: 4 months ago.
Category: Tax
Expert:  Mark Taylor replied 4 months ago.

Hi Bill, my name is***** am a CPA. I would be happy to help you with your questions.

Expert:  Mark Taylor replied 4 months ago.

There are a lot of rules that would need to be followed for the Self-Directed IRA.

Expert:  Mark Taylor replied 4 months ago.

If you are planning on investing in Real Estate, I believe that you would be better off investing personally or setting up an LLC.

Expert:  Mark Taylor replied 4 months ago.

One of the benefits of investing personally is taking advantage of the 1031 exchange rules. With 1031 exchanges you can effectively defer the gain from rental property.

Customer: replied 4 months ago.
I am looking for a more specific answer. In your opinion, is it a better idea to not invest in Real Estate through a self directed IRA due to all of the rules that must be followed?
Expert:  Mark Taylor replied 4 months ago.

Yes, In my opinion I believe that it is better to invest personally. Depending on your Adjusted gross income you would be able to take advantage of rental losses.

Expert:  Mark Taylor replied 4 months ago.

Please feel free to ask any questions. I am happy to discuss my opinion. I apologize I was not trying to be vague in my prior response.

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