Brandon Payne asked 2 months ago
In your podcast “How to Put Real Estate in your ROTH IRA” May 2019, and your podcast “Getting a mortgage in your IRA” April 2022, you two talked about partner financing for real estate in an IRA.
I was wondering if you could explain a basic breakdown of how taxes would be realized with both parties.
Example: My LLC within my self directed IRA (not solo 401k) would fund 20% for down payment on the rental (lets assume property value of 100k for simplicity sake). My business partner would provide the credit and obtain the loan for the rest. Ownership would be divided between myself (75%) and my partner (25%). Rent would be $1000/month.
How would taxes be recognized on a yearly basis for each party, and the how would they be recognized at the final sell of the property?