11-03-2005, 01:53 PM
| | Use IRA to buy Real Estate
I'm thinking about using a portion of my IRA to buy land. I know I have to go through a custodian that allows you to do this within a self-directed IRA, and I could just keep the proceeds of a future sale of that land within that IRA. But I'm wondering what the tax repercussions would be if I wanted to keep the land and build on it for my own use in 10 years or so? How would this transaction be handled so that it would pass muster with Uncle Sam?
Does this one have an easy answer? It doesn't seem that there are any tax questions with easy answers. http://www.bankrate.com/brm/itax/ta.../20051103a1.asp