Did you know that real estate investors can buy an investment home with a Self Directed Roth IRA or Roth 401K and pay no income taxes?
Why, because Self Directed Roth IRA’s and Roth 401K’s are monitored by the Department of Labor, not the Internal Revenue Service. An IRA is a trust account that can be used to invest in many forms of investments including investment real estate.
How would you like to purchase investment property with an investment trust account and not pay income taxes on the profit?
Clients tell us most Financial Planners do not want you to know how because they make money on selling investment products. CPA’s most likely will not understand this because they know IRS regulations and not the new Department of Labor’s regulations implemented this year. The Department of Labor regulates Roth IRA’s and Roth 401K’s unless you do a prohibitive act. If you do a prohibitive act, Uncle Sam gets involved.
Instead of using cold hard cash for the next investment property you purchase you should open up a Self Directed Roth IRA or Roth 401K (the difference depends on factors like investment options and their personal information like income). You should buy the investment home with the money from your Self Directed IRA or Roth 401k. The benefit to you is that you can take full advantage of the IRS tax code and can escape paying income taxes on the profit. Unlike a 1031 Exchange with its rules and regulations, buying a home with a Self Directed Roth IRA or Roth 401k is much easier. The profits earned can be diversified into mutual funds, hard money mortgage loans, investments into a private business, purchasing additional investment property or engaging into a leasing program.
Have you seen the headlines….
Buy Investment Property with ZERO Down?
If you are a mortgage or real estate professional you wonder why real estate gurus are charging fees for advice that only 99% of the population can do. You wonder why people are paying thousands of dollars for advice that is not possible for 99% of the population.
They are not selling information. They are selling a show and a get rich scheme. If you believe them, you are in a large group. What’s the secret with these real estate gurus schemes? The secret is these self proclaimed multi-millionaires sharing advice that is in most part illegal. It is true that everyone did them in the 90’s.
Inflating appraisals and forgiving seconds is illegal.
Checkout the FBI and Department of HUD website if you don’t believe us. The FBI and the Department of HUD have hired investigators to search for illegal activity. Buying a home with a Self Directed Roth IRA or Roth 401k and not paying income taxes on the profit is perfectly legal.
I have shared this with many investors like you. They all call me a liar. They go back home and talk to their CPA’s and Investment Counselors. Their “professionals” tell them it just doesn’t make sense. After I show them where to find the information on the government websites, they come back asking for help.
Could you imagine an investor finding a Cash Flow Property and purchasing it with no hard cash and not paying income taxes on the profit? What would you invest in?
The key to buying investment real estate with a Self Directed Roth IRA or Roth 401k is to have a Real Estate Agent, CPA and a Certified Mortgage Planner who are knowledgeable about setting up the correct IRA Trust Account and monitoring the process to prevent a prohibitive transaction.
If you like to pay income taxes on your earnings, use your hard cash to buy investment properties and deal with the rules on of 1031 exchange, maybe this isn’t for you.
If you dislike paying high income taxes, using your hard cash and working with beauracacy, maybe buying an Investment Property with a Self Directed Roth IRA or Roth 401k is for you.
Dowell Taggart Team’s website:
http://www.DowellTaggart.com
If you would like the help of a professional team to purchase investment real estate, contact the Dowell Taggart Team. We have many ideas to help you succeed. Whether you have a questions about Kansas City Investment Properties for sale or general Kansas City real estate investment questions, our site is filled with ways for you to contact us for one-on-one expert investor guidance. When you're ready for the personal contact that is needed to achieve your real estate investor goals, we are ready to assist you. Clients tell us that we have some great information for real estate investors. If you think so after looking at our site, maybe we should meet. If you are in need of the services of a Kansas City Real Estate Investment Specialist, the Dowell Taggart Team is a phone call away. This information is copyrighted, please contact us if you would like to use the whole report or a part.
Pay No Income Taxes when Buying Investment Real Estate with a Roth IRA
Re: Pay No Income Taxes when Buying Investment Real Estate with a Roth IRA
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