Investors are seeing the growing trend of big companies taking full advantage of the tax benefits of a REIT, are looking for a structure with similar benefits that they can invest in, and are finding that structure in the Self-Directed IRA LLC.
Miami, FL (PRWEB) April 23, 2013
The growing interest of corporations in changing from a standard corporation to a Real Estate Investment Trust (REIT) in order to benefit from the tax advantages of the structure has many investors looking for other structures with similar tax benefits, according to Adam Bergman, a tax attorney with the IRA Financial Group. “Investors are seeing the growing trend of big companies taking full advantage of the tax benefits of a REIT, are looking for a structure with similar benefits that they can invest in, and are finding that structure in the Self-Directed IRA LLC,” Mr. Bergman stated.
The REIT structure allows corporations to declare themselves a special trust, which is typically exempt from paying federal taxes. Similarly, a Self-Directed IRA LLC allows entrepreneurs to make tax-deferred investments and in the case of a Self-Directed Roth IRA LLC, all gains are tax-free. Unlike a Traditional IRA, an individual is not permitted to take an income tax deduction for their Roth IRA contributions. All Roth IRA contributions are made with after-tax dollars, meaning that the amount of the contribution is treated as basis in the IRA. Earnings and gains from a Roth IRA are tax-deferred and may be tax-exempt if certain conditions are met. What this means is that all income and gains generated by a Roth IRA investment are not subject to income tax.
To meet the demands of investors looking for more tax-free investment solutions, the IRA Financial Group, the leading provider of Self-Directed Roth IRA LLC solutions, has introduced the Special Real Estate Roth IRA, a self-directed retirement solution for buying and selling rental properties tax-free.
The Special Real Estate Roth IRA LLC offers one the ability to use his or her retirement funds to make almost any type of investment on their own without requiring the consent of any custodian or person, including real estate. The IRS only describes the type of investments that are prohibited, which are very few.
The IRS has always permitted an IRA to purchase real estate, raw land, or flip homes. “With IRA Financial Group’s Special Real Estate Roth IRA LLC solution, buying and flipping rental properties is as simple as writing a check and is tax-free,” stated Mr. Bergman. “As the manager of their Real Estate Roth IRA LLC, the IRA holder will have control over his or her IRA funds so that flipping a home can be made by simply writing a check,” Mr. Bergman added.
One major advantage of buying rental properties with retirement funds is that all rental income generated by the property is tax-deferred until a distribution is taken (Traditional IRA distributions are not required until the IRA owner turns 70 1/2). In the case of a Self-Directed Roth IRA LLC, all gains are tax-free.
“The most attractive feature of the Roth IRA is that even though contributions are not deductible, all distributions, including the earnings and appreciation on all Roth contributions, are tax-free if certain conditions are met,” Mr. Bergman stated.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading facilitator of Self-Directed IRA plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate, without custodian consent.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.