Self Directed IRA

Did you know you can purchase real estate investments with your IRA, 401(k) or other retirement plans? Well, you can!

Contrary to what your stock broker or financial planner may have told you; stocks, bonds and mutual funds are not the only permissible investment choices within your retirement accounts.

Self-Directed retirement accounts are becoming increasingly popular as more and more Americans desire increased control over their retirement investments. The benefits of Self-Directed retirement accounts are clear:

  • Greater profit potential
  • Tax deferred or tax-free growth
  • Added diversification
  • No restrictions similar to 1031 Exchanges
  • Greater control over your investments
  • Much much more….

High net-worth individuals buy real estate in their IRA accounts to diversify their portfolio and enjoy tax-free and tax-deferred investments. We can also help you identify investment opportunities and show you how to implement them successfully within your retirement plan while paying little or no taxes!

1031 Exchanges

If you currently own real estate (Residential, Commercial or Land), then you can take advantage of a 1031 Exchange.

  • Investors swap properties, with the tax from any gain being deferred to a later date.
  • The transaction, which is not treated like an outright sale, must involve properties of like kind

Two basic rules must be met to completely defer income tax on the gain realized from the sale of the relinquished property:

  • The purchase price of the replacement property must be equal to or greater than the net sales price of the relinquished property.
  • All cash or other proceeds received from the sale of the relinquished property must be used to acquire the replacement property.

Property that qualifies for deferred gain treatment under a 1031 Exchange must be “like kind”, as defined as follows:

  • Property held for productive use in a trade or business.
  • Property held for investment.

Contact us to find out how you can do a 1031 Exchange with your investment property, today.

Life Insurance Cash Value

Did you know you can purchase real estate using the accumulated cash value in your life insurance? Not all life insurance policies offer a cash value or surrender value so you’ll you want to consult with your life insurance company.

The premiums you pay for your life insurance is not tax deductible but when you use the cash value you can deduction the real estate depreciation, cost segregation bonus depreciation, interest payment and expenses. If your heirs are a beneficiary on the life insurance policy, the proceeds escape income and estate taxation. This allows deductions on the front end and nontaxable income on the back end.

This investment strategy allows you to receive benefits of additional income and tax deductions from your life insurance and allows your heirs to benefit by not paying any taxes on your real estate investment.

Contact us to find out how you can use your life insurance policy to purchase additional investment property, today.