Real estate as a retirement investment
We have an opportunity to buy a vacation, shoreline, home at a good price. The property has been professionally managed as a rental property for over ten years, returning a small annual profit. We have sufficient liquid assets to make a cash purchase, but they are all tied up in retirement funds. Can we purchase the property as a tax-deferred retirement investment? Thank you for your advice.
SAVAGE SAYS: There are trust companies that can act as a trustee for assets such as these within an IRA. But there is a catch:? you can’t use it for personal purposes; it must remain strictly an investment property. And any additional funds needed for upkeep would also have to come from your?IRA. I don’t think that’s what you have in mind. So you’ll have to pay for it with money held outside the IRA,? and declare any income from rentals on your tax return.