Is it possible to buy real estate through an IRA?

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  • NickB Herriamn, UT
    April 8, 2014 3:07 p.m.

    Just like the other people who have commented have suggested a self directed IRA is a great way to invest in real estate while getting the tax benefits that come through retirement accounts. There are so many companies that are out there today that can help you invest in real estate with an IRA. It does make it really nice to have a local company help you with this as you can visit the company if you have to sign papers or anything specifically. One of the best and biggest companies in salt lake city that deals specifically with self directed IRAs is Accuplan Benefits Services. You can check them out at

  • dbecker53 Bountifu, UT
    April 2, 2013 4:04 p.m.

    IRAs are great vehicles with which to purchase real estate!, however, one cannot purchase a residence with your IRA and then live in the residence while title is held in the IRA. As the article infers, purchasing a residence with IRA cash is best, but if a mortgage is needed to complete the transaction, the mortgage/trust deed must be non-recourse to the IRA and the IRA owner (meaning the IRA owner cannot guarantee the loan). If finances collapse and the residence goes into foreclosure, the lender can only take recourse against the real property and not against the IRA or the owner of the IRA.
    The greatest aspect of an IRA owning the real property is that the IRA can buy and sell real property and never pay any taxes until funds are finally distributed to the IRA owner when the owner retires. No need to worry about capital gains or keeping the property too long simply as a long-term investment, for those taxes are kept at bay until distribution.
    One very good local company which works with self-directed accounts is American Pension Services.

  • Mark J. Kohler Cedar City, UT
    April 2, 2013 3:42 p.m.

    This is a VERY common practice and as a law firm and accounting firm, we have been seeing clients use this strategy with success over the past 10 years. Typically an LLC is used for the IRA to invest in, and to hold the real estate or assets. This gives the IRA owner asset protection AND easier control and access to the funds. There are some 'prohibited transactions' to look out for, but once you know the rules, it's not a big deal. One other note, it's CRITICAL to use a quality 'custodian' to hold the self-directed IRA funds. There are several companies in Utah, but the best we have worked with over the year is American Pension out of Draper. You can literally walk in and meet the owner of the company and know where your IRA is being held. Exciting!!! Mark Kohler, KKOS Lawyers, Partner, CPA, Attorney