Investing in real estate inside an IRA comes with strict rules. Complication number one: Owning property in an IRA negates all the familiar tax benefits of owning investment real estate, says James Lange, a CPA and financial planner in Pittsburgh. You can’t deduct property taxes or mortgage interest or take advantage of depreciation.
Aggravation number two: There’s a long list of prohibited transactions. You and your relatives are barred from occupying or working on the property, so forget free rent or “sweat equity.” The IRA, not you, owns the place, so if you’re considering a rental property, you’ll need a property manager to find tenants. Every dollar you invest in the property, plus expenses such as roof and furnace repairs, must come out of the IRA. Flout any rule and it’s a Catastrophe: The tax-deferred status of your entire IRA is ruined, and you’ll owe income taxes on the full value of the IRA’s assets, plus a 10% penalty if you’re younger than 59½.
Contact Connie Dello Buono, helping doctors and business owners reduce income taxes via a busiess structure and financial strategy. 408-854-1883 motherhealth@gmail.com or conniedbuono@gmail.com
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Published by connie dello buono
Connie Dello Buono is based in Sunnyvale California. Her first ebook is about women's health, Birthing Ways Healing Ways and her recent one is about cancer prevention, Curated Healing Ways. She had helped women have holistic childbirth as childbirth educator, founded Motherhealth, to serve seniors in the bay area with holistic caregivers and blogs at www.clubalthea.com with more than 10,000 health and finance related posts.
Connie trains her own caregivers, which are the favorites of most bay area seniors who are home bound and alone.
She is active in the rehab and nursing facilities, volunteering on music and movement for seniors.
She is a member of Lion's club and offered scholarships to students in the Philippines.
She is active at churchinsunnyvale.us and has Fridays Bible home study in Sunnyvale using the recovery version of the Bible , free at biblesforamerica.us
She loves dancing and teaching and her courses can be found at
https://teachclub.com/@thriveafter60
She is California Life Insurance licensed providing life insurance for older adults with health issues and helping women retire safely with income for life.
at menloassetca.com , she helps with 401k rollover.
3 Benefit plans
- Mortgage protection using term life insurance to pay for mortgage balance in event of death
- Final Expense plan using Single Issue Whole Life Insurance, with cash back, disability benefit and guaranteed in the presence of health issues
- Fixed Index Annuity retirement plan for safe, accessibility, less fees, less taxes, avoids probate as it goes directly to beneficiaries, rate of return with no downside market participation.
She brings compassion and understanding to the needs of her clients, bringing holistic approach in health and life insurance. Her goal is to free families from worries especially during covid with caregivers and life insurance in the presence of health issues, especially for women.
She can be reached at 408-854-1883 , motherhealth@gmail.com
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