American IRA—A National Self-Directed IRA Services Provider—Announces A Cautionary Blog "Avoiding Real Estate IRA Tax Traps"

Every investor needs to read this blog "Avoiding Real Estate IRA Tax Traps". The combination of real estate with the tax advantages of retirement accounts such as Self-Directed IRAs is a potentially powerful investment engine as long as investors follow a few basic rules.

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American IRA CEO

American IRA CEO, Jim Hitt

The blog explains that the combination of real estate with the tax advantages of retirement accounts such as Self-Directed IRAs is a potentially powerful investment engine. But if people want the tax advantages to stick, they have to follow a few rules.

Charlotte, NC (PRWEB) July 30, 2014

American IRA's latest blog is a cautionary tale to all real estate investors including Self-Directed IRA investors. "Avoiding Real Estate IRA Tax Traps". This blog delves deep into the things that everyone needs to know.

The blog explains that the combination of real estate with the tax advantages of retirement accounts such as Self-Directed IRAs is a potentially powerful investment engine. But if people want the tax advantages to stick, they have to follow a few basic rules to avoid IRS penalties. Running afoul of them even once could cause the IRS to revoke the IRA status, resulting in big tax penalties.

Another important point this blog touches on is that the first thing to understand is the prohibition against self-dealing. That is, using an IRA property for personal benefit, or the benefit of the IRA owner's family. Under the law, an IRA is holding a property in trust for the purpose of contributing to retirement income security. If an IRA holder begins appropriating the property for their own immediate short-term use, that creates a conflict of interest. It also short-circuits the original purpose of the IRA itself: Congress grants tax advantages to IRA accounts because taxpayers have to give up current consumption to contribute to IRAs.

The blog also contains a well put together FAQ section to cover the important points that everyone needs to know.

This blog is a must read for all real estate and Self-Directed IRA investors. Click here to view the full version of this blog.

About American IRA, LLC:

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American IRA services thousands of clients and has over $300 million in assets under administration.

American IRA was built by investors for investors, and brings their successful investment experience to the table, providing excellent educational material showing the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

American IRA is conveniently located in Asheville, NC and Charlotte, NC, and serves clients nationwide.