Fort Myers, FL (PRWEB) April 24, 2014
AdvantaIRA Trust is a self-directed IRA administrator that gives clients the option to invest in alternative assets, such as real estate. Investing in real estate is a great way for individuals to diversify their retirement portfolio which is why AdvantaIRA Trust and Real Estate Acquisitions USA are holding a lunch and learn on April 30 about investment real estate.
Using an IRA to invest in real estate has great tax-saving benefits. All income inside the retirement account is tax-sheltered. This means all income and expenses within the IRA are tax-free. All types of property qualify for a real estate IRA, including farmland, commercial property, and trust deeds. Foreign property also qualifies. Regardless of the type of real estate, it has to be for investment use only. This means that the property within the IRA cannot be used as a primary, secondary, or vacation home. “Most people aren’t aware of investing in real estate with an IRA when looking into purchasing investment property,” says Dave Owens, managing partner at AdvantaIRA Trust, “it’s a great way to defer taxes whiling growing your retirement account.”
There are additional rules for real estate IRAs other than no personal use. Since the IRA owns the property, the deed would be titled in the name of the IRA administrator or custodian. For example, all paperwork would be titled AdvantaIRA Trust LLC. FBO (client’s name) IRA number 12345. Additionally all income must go back into the IRA, such as rental checks and sale proceeds. Additionally, all expenses must be paid by the IRA including tax bills and all other bills associated with the property.
Another rule to remember is that the real estate in the IRA cannot be sold, bought, or leased to a disqualified party. Disqualified parties in self-directed IRA s are all lineal ascendants and descendants; this consists of the IRA holder, the IRA holder’s spouse, their children, their grandchildren, and the IRA holder’s parents. The property can be rented out to a friend or non-disqualified party, but they have to pay the fair market price, meaning no “family discounts.”
Real estate in an IRA can be purchased in full by the IRA owner or in percentages. For instance, the IRA can own 60 percent of the property and the client can hold 40 percent personally outside of their IRA. There is even an option of non-recourse financing within the retirement account.
Purchasing real estate is simple and can be started by opening an account with an administrator such as Advanta IRA. After opening the account, the next step is funding it by making an IRA contribution, transfer, or rollover. After funding the account the IRA holder would then identify the property that they wish to purchase. Next the client would complete a buy direction letter that is supplied by Advanta IRA. Advanta IRA would review and sign all closing documents by working with the closing agent. The property is then held within the IRA.
During the lunch and learn not only will AdvantaIRA Trust cover the details of using an IRA to invest in real estate, Real Estate Acquisitions USA will cover how to actively and passively invest in real estate, what it takes to start investing in real estate, how to determine whether to be hands-on or hands-off, how to leverage time and investment capital, profitable partnership structures, as well as short and long-term opportunities that can be capitalized on in an IRA or 401(k).
Event: Put Your IRA to Work in This Real Estate Market
Date: April 30, 2014
Location: Carrabba’s Italian Grill, 12990 Cleveland Ave., Fort Myers, FL.
Cost: Free, includes lunch
Register: To register email Brenda Whetsell at Brenda(at)AdvantaTrust(dot)com
About AdvantaIRA Trust
AdvantaIRA Trust is a self-directed IRA administrator that provides tax-deferred and tax-free investment opportunities, superior customer service, and educational tools to assist investors in realizing the maximum benefits possible within IRAs. AdvantaIRA makes it easy to use self-directed retirement plans to invest in assets that the individual investor knows, understands, and can control.
About Dave Owens
Dave Owens is the managing partner at AdvantaIRA Trust in Fort Myers, Miami, Gainesville, New England, and the Florida Panhandle. Owens opened the AdvantaIRA Trust headquarters in Fort Myers, FL in 2003. His background as a certified public accountant, combined with a long history of personal retirement self-direction, provides his audiences and clients with solid advice and practical solutions to their IRA investment questions. Dave holds a BS in accounting from Purdue University. He also earned the prestigious Certified Exchange Specialist designation through the Federation of Exchange Accommodators.