Buying Foreclosures with Your Self Directed IRA Tax Free Wealth Building Use Your IRA to Invest in Foreclosures: 5 Things You Need To Know
Investing in a foreclosure property with your IRA can be a great way to increase your available funds to make deals and possibly grow any earnings tax-free. Yeah, tax-free earnings. For those veteran investors (and learned newbies), tax-free earnings is exactly what you have been looking for. That is one of many benefits of investing with your self-directed IRA that can help build your wealth portfolio. Here are a few points everyone needs to know to help get started: 1) Get that foreclosure.Your IRA can purchase a foreclosure property which could free up other available funds for additional investments. Notice the 'Your IRA' part of that statement. Since your IRA owns the property, all expenses that go into the property must come from the IRA account. Because of this, your IRA can reap certain tax advantages (#4). If your IRA doesn't have enough to own and maintain an investment property outright, you could always own a specified portion of a home through a partnership (undivided interest) or look into non-recourse loans. 2) Go ahead, sell it or rent it out!If you decide to rent or sell a property, that decision is completely up to you. Either way, it will help you reach your investing goals if you’re using a self-directed IRA. The funds received from a sale or income from renters would go directly toward growing your IRA account, which in turn, will help you make more out of your investments.3) Tax-Advantages!The two types of IRAs, Traditional and Roth, have different tax advantages. With a Traditional IRA investment, you would not have to pay tax on any earnings until you started making qualified distributions at 59.5 years old. The idea is that you could possibly be in a lower tax bracket at that time and enjoy the fruits of your labor with less tax applied than you do today.The Roth IRA allows you to grow all earnings tax free (meaning you never have to pay tax on it) since the money used to fund the account is 'after-tax'. Paying tax later at a lower rate (Traditional) or not ever paying tax on earnings (Roth) makes that foreclosure investment look even better, doesn't it?4) Where’s your IRA at?To invest in foreclosures with your IRA it must be a self-directed IRA. Unfortunately, most financial institutions will not allow you to self-direct your IRA investments because they want you to invest in their stocks, mutual funds, and bonds portfolio. To get out of that trap and start choosing where your money is invested (i.e. foreclosures), you need the assistance of a qualified and experienced self-directed IRA custodian. A custodian acts on your behalf to facilitate your self-directed investments through IRAs, 401ks and other small business retirement accounts.5) Do your research.Self-directing IRA investments in real estate is perfectly legal and has been since 1974. You should be aware of the guidelines the IRS has published about IRAs (IRS Publication 590. You wouldn't invest in a home without knowing about the property, would you? Knowing your investment funding options should be treated the same way. Consult your financial team (custodian, CPA, and/or lawyer) to learn as much as you can to maximize your investment's tax benefits.Do some homework, find the right self-directed IRA custodian, and free up additional capital to start growing your foreclosure investments tax-free! Using a self-directed IRA is a great way to build out your investment portfolio and reach your financial goals. Real Estate in Your IRA? Harness the power of real estate in an IRA to make tax-free or tax-deferred profits for the rest of your life! By Edwin Kelly, Director of New Business Development for Equity Trust Company After completing a successful real estate transaction, do you ever wish a chunk of the profits didn’t have to go back to the IRS for taxes? Do you ever dream about how many more real estate deals you could do or how many more properties you could buy if profits weren’t split with the government because of taxes?Well dream no more. Realizing tax-free or tax-deferred profits on real estate is a reality.Government sponsored retirement plans such as IRAs and 401(k)s allow you to invest in almost anything (including real estate), not just stocks, bonds and mutual funds. And all the benefits those plans provide, tax-deductions and tax-free profits, apply to whatever investment you choose, including real estate.The Power of Tax-Deferred and Tax-Free Profits"The most powerful force on Earth is compounding interest." - Albert Einstein One of an IRA's greatest features is that it allows Americans to enjoy the true power of tax-deferred compounding interest. Compound interest occurs when interest is earned on a principal sum along with any accumulated interest on that sum. In other words, you are earning interest not only on your original investment sum, but also on the interest earned from the original sum.Compound interest can occur with any investment you make, but the "true" power of compounding interest is obtained when you make an investment in a tax-deferred environment, like an IRA.By taking advantage of an IRA's tax-deferred status, you do not have to pay tax immediately on your earnings (like the sale of a property or rent collected). Thus, you are able to enjoy the power of compounding on ALL of your profit, not just what is left after taxes. Now apply those benefits to your real estate or alternative asset investing. Tax-deferred profits on your real estate transactions allows greater flexibility to make more investments, or to just sit back and watch your real estate investment grow in value, without worrying about taxes.Is This for Real? Most investors don't know this opportunity exists because most IRA custodians do not offer truly self-directed IRAs that allow Americans to invest in real estate and other non-traditional investments.Often, when you ask a custodian/trustee, "Can I invest in real estate with an IRA?" they will say, "I've never heard of that" or, "No, you can't do that." What they really mean is that you can't do this at their company because they only offer stocks, mutual funds, bonds, or CD products. Only a truly self-directed IRA custodian like Equity Trust Company (www.trustetc.com) will allow you to invest in all forms of real estate or any other investments not prohibited by the Internal Revenue Service. Is This Legal? It sure is. Since 1974, Equity Trust Company and its affiliates have assisted clients in increasing their financial wealth by investing in a variety of opportunities from real estate and private placements to stocks and bonds in self-directed IRAs and small business retirement plans. IRS Publication 590 (dealing with IRAs) states what investments are prohibited; these investments include artwork, stamps, rugs, antiques, and gems. All other investments, including stocks, bonds, mutual funds, real estate, mortgages, and private placements, are perfectly acceptable as long as IRS rules governing retirement plans are followed. (To view IRS Publication 590, please visit www.trustetc.com/education/irs-pubs.html.)Getting Started“Is it hard to do?” is a common question about investing in real estate with a self-directed IRA. It is really simple and is very similar to the way you currently invest in real estate. The following five steps demonstrate how easy it is to invest in real estate, or just about anything else, with a self-directed IRA.But, don’t delay in opening an account. Every day that passes is one less day your investment can benefit from the Earth’s most powerful force (at least according to Einstein), compounding interest.For more information about self-directed IRA investing, the plans and services available to you, and how to get started, please contact Kocurek Capital Investments, LLC at 1-888-543-5561. (Equity Trust is a passive custodian and does not provide tax, legal, or investment advice.Any information communicated by Equity Trust Company is for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with legal, tax, and accounting professionals.) SIGN UP FOR THE FREE WORKSHOP THIS WEEKEND 11/15/08 AND BRING A FRIEND! IF YOU ARE A MEMBER OF ONE OF DONNA'S NETWORKING GROUPS YOU GET IN FREE AND SO DOES ONE FRIEND. CALL 888-543-5561 AND REGISTER TODAY! For more details go to: http://www.selfdirectedrealestateira401k.com/liveworkshop.html This message was sent by: Kocurek Capital Investmetns, 15105-D John J. Delaney Rd. #223 , Charlotte, NC 28277 Powered by iContact: http://freetrial.icontact.com To be removed click here: http://app.icontact.com/icp/mmail-mprofile.pl?r=29567540&l=49282&s=2G95&m=364723&c=274296 Forward to a friend: http://app.icontact.com/icp/sub/forward?m=364723&s=29567540&c=2G95&cid=274296 --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Dubai Realtors" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/dubai-realtors?hl=en -~----------~----~----~----~------~----~------~--~---
