Can You Make Multiple Investments within One Self-Directed IRA?
September 20th, 2017
Yes. You are permitted to make multiple investments with your Self Directed IRA LLC as long as they are not prohibited transactions.
The following investments have been the most popular investments for our Self-Directed IRA clients for September 2017:
Even though Bitcoin is labeled as a “cryptocurrency”, from a Federal income tax standpoint, Bitcoins and other cryptocurrency are not considered a “currency.” The IRS tax treatment of virtual currency has created a favorable tax environment for retirement account investors. In general, when a retirement account generates income or gains from the purchase and sale of a capital asset, such as stocks, mutual funds, real estate, etc., irrespective of whether the gain was short-term (held less than twelve months) or long-term (held greater than twelve months), the retirement account does not pay any tax on the transaction and any tax would be deferred to the future when the retirement account holder taxes a distribution (in the case of a Roth IRA no tax would be due if the distribution is qualified). Hence, using retirement funds to invest in cryptocurrencies, such as Bitcoins, could allow the investor to defer or even eliminate, in the case of a Roth, any tax due from the investment.
The following cryptocurrency investments have been popular with our Self-Directed IRA clients in the month of September 2017:
- Ethereum Classic
Cryptocurrency investments, such as Bitcoins, are risky and highly volatile. Any investor interested in learning more about Bitcoins should do their diligence and proceed with caution.
Most people mistakenly believe that their IRA must be invested in bank CDs, the stock market, or mutual funds. Few investors realize that the IRS has always permitted real estate to be held inside IRAs. Investments in real estate with a Self-Directed IRA LLC are fully permissible under IRS rules. The Internal Revenue Code permits you to engage in almost any type of real estate investment, aside generally from any investment involving a disqualified person.
Income or gains generated by an IRA generate tax-deferred/tax-free profits. Using a Self-Directed IRA LLC to purchase real estate allows the IRA to earn tax-free income/gains and pay taxes at a future date (in the case of a Roth IRA the income/gains are always tax-free), rather than in the year the investment produces income.
The following real estate investments have been popular with our Self-Directed IRA clients in the month of September 2017:
- Residential homes – for sale and flip
- Vacation homes for rental
- Raw land
- Joint venture investments involving commercial properties
- Mortgage notes
Hard Money Lending
With IRA Financial Group’s Self-Directed IRA hard money lending solution, traditional IRA or Roth IRA funds can be used to make secured or unsecured private loans to any third-party who is not a disqualified person. Because most financial institutions continue to require solid credit scores and spend weeks reviewing financial statements, tax returns and business plans, there is a growing need for quick financing for many individuals, small business and investors, especially real estate developers and builders for their real estate projects.
The following hard money lending investments have been popular with our Self-Directed IRA clients in the month of September 2017:
- Private secured loans to individual non-disqualified individuals
- Non-secured loans to real estate developers – generally short-term loans
- Hard money lending investment funds
- Loans to individuals recovering from hurricane Harvey and Irma
Please contact one of our Self Directed IRA Experts at 800-472-0646 for more information.