Growing Demand in 2015 from 1031 Exchange Real Estate Investors for Self-Directed Roth IRA, According to IRA Financial Group Survey

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Using a self-directed Roth IRA to buy real estate allows one to eliminate tax on gains whereas a 1031 exchange only differs the tax

Using a self-directed Roth IRA to buy real estate allows one to eliminate tax on gains whereas a 1031 exchange only differs the tax

With a self-directed Roth IRA, there is no reason to use a 1031 exchange since all the income and gains will be tax-free

IRA Financial Group, the leading provider of “checkbook control” self-directed Roth IRA LLC solutions internal survey showed that in 2015 a growing demand from 1031 exchange real estate investors who are looking to buy real estate and generate tax-free returns. Whereas, a 1031 exchange, also called a like kind exchange, is a swap of one business or investment asset for another. If one comes within a 1031, you will either have no tax or limited tax due at the time of the exchange. Essentially, the investor or owner of a real property can change the form of investment without cashing out or recognizing a capital gain. That allows the investment to continue to grow tax deferred. The gain can be rolled from one piece of investment real estate to another. While there may be profit on each swap, one can avoid tax until the property is sold for cash many years later. Then one would pay the tax on the gain at a long term capital gain rate.

“Using a self-directed Roth IRA to buy real estate allows for tax-free returns in contrast to a 1031 exchange which only defers tax, “ stated Adam Bergman, a tax partner with the IRA Financial Group.

The primary advantage of using a Self Directed Roth IRA LLC to buy real estate is that the transaction can be made by simply writing a check. In addition, all income and gains associated with the self directed Roth IRA LLC would grow tax-free.

IRA Financial Group’s Self-Directed Roth IRA LLC is an IRS approved structure that allows one to use their retirement funds to make purchase real estate tax-free and without custodian consent. The Self-Directed IRA LLC involves the establishment of a limited liability company (“LLC”) that is owned by the Roth IRA (care of the Roth IRA custodian) and managed by the IRA holder or any third-party. As manager of the Roth IRA LLC, the IRA owner will have control over the IRA assets to make traditional as well as non-traditional investments, such as real estate by simply writing a check

Using IRA Financial Group’s self directed Roth IRA LLC with “checkbook control” solution to make real estate transactions quickly without any custodian delay. “By using a “checkbook control” self-directed IRA LLC our clients have been able to make real estate quickly and without any custodian delay,” stated Mr. Bergman. “Using a Roth IRA to buy real estate is a far more tax advantageous than using a 1031 exchange, “ stated Mr. Bergman. “With a self-directed Roth IRA, there is no reason to use a 1031 exchange since all the income and gains will be tax-free,” stated Mr. Bergman.

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 “checkbook control Self Directed IRA Facilitator. 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.

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Jaclyn Baily
IRA Financial Group, LLC
+1 (800) 472-0646 Ext: 9
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