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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
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: 11 months ago.
Category: Tax
Expert:  Mark Taylor replied 11 months ago.

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

Expert:  Mark Taylor replied 11 months ago.

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

Expert:  Mark Taylor replied 11 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 11 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 11 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 11 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 11 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.