Interest In Real Estate IRAs Is Bursting At The Seams At American IRA, LLC, A National Provider Of Self Directed IRAs, What’s All The Fuss About

Interest In Real Estate IRAs Is Bursting At The Seams At American IRA, LLC, A National Provider Of Self Directed IRAs, What’s All The Fuss About













Self-Directed IRAs Give You Control of Your Retirement


Lexington, KY (PRWEB) January 20, 2012

Realtor Mag recently reported that optimism is building in the housing market. American IRA is noticing the increased optimism as they are receiving an overwhelming interest in Real Estate IRAs.

Jim Hitt, CEO of American IRA, explains, “Many people are surprised to learn that you can own real estate – not just REIT shares or other stocks, but actual rocks, soil, brick and timber real estate – within your Individual Retirement Arrangement. The IRA vehicle allows you to realize all the advantages of the IRA – tax deductions, no capital gains taxes, deferral of income tax, asset protection, and in some cases, tax-free income – while allowing you to invest in all types of real estate.”

Self-Directed IRAs

The key to using their IRA to invest in real estate is a special vehicle called the ‘self-directed IRA ,’ sometimes called a “real estate IRA.” With these plans, they take over the role normally played by investment companies, such as brokerage companies, mutual fund houses and insurance companies. Instead, they, or their designated representative, take close control of their IRA.

IRS rules don’t allow them to have possession of the assets directly, however. They can’t have a suitcase of stock certificates next to the pile of oily rags by the furnace in their garage and call that their IRA. Instead, they have to have a third party administrator hold the assets on their behalf. When they select our firm as the administrator of their IRA account, however, they have much more flexibility to invest in what they know than they would with a traditional brokerage or insurance company. If they are a mediocre stock picker but a real estate ace, it makes sense for them to stick to their circle of competence. Our firm lays the administrative foundation, and lets them do what they do best – pick real estate – within their IRA.

Prohibited Transaction Rules

The IRS does place some limits on what they are allowed to do with assets in their IRA:

•They cannot use the property for their own benefit. This means they cannot stay in a rental property, even for a night. Many people make the mistake of thinking they can use the property for up to two weeks for their own benefit without losing the tax advantages of the IRA. It is true that tax rules for rental properties do allow them to stay in their own property for up to two weeks. However, this is not true for real estate within an IRA.

•They cannot buy property directly from their IRA, nor sell directly to it. Nor can their designated beneficiary, nor any of ancestors or descendants or any spouse of an ancestor or descendant. For example, their IRA cannot buy or sell directly to their parents, grandparents or children, nor to their spouses. Furthermore, their IRA cannot buy or sell directly to companies or entities they own or control.

•They cannot have the IRA pay them or their company to manage it, nor provide any product or service to it. They also cannot have their IRA do business directly with companies controlled by them or their family members.

•Their IRA cannot do business directly with any of the professionals who service the account. For example, their CPA or financial planner cannot also be the person repairing the roof on a property owned by their IRA.

•They cannot lend money directly to their IRA, nor borrow from it.

•They cannot borrow money directly from their IRA, nor can they use their IRA to lend to their family members , defined as their children, grandchildren, parents or grandparents and any of their spouses or entities they control. However, siblings, aunts, uncles and cousins may be acceptable.

•They cannot pledge their IRA as collateral for a loan – all debt in the IRA must be non-recourse debt. They cannot sign a personal guarantee on a loan within the IRA.

•They cannot commingle personal funds with funds within IRA accounts . They may, however, partner with themselves and others at the time of acquisition of the asset.

But enough of what they can’t do. Here is what they can do, investing in real estate in a self-directed IRA :

•Contrary to popular belief, they can, in fact, borrow money within their IRA to purchase real estate. It has to be non-recourse financing (terms may vary by lender); however, non-recourse financing and unrelated debt income tax (UDIT) will apply. UDIT is only assessed on the percentage of the profit that relates to borrowed funds. For more information on this topic, see our article on leveraged real estate.

•They can collect rental income, tax-deferred and all the income goes into their retirement account.

•They can own real estate within a Roth IRA and collect rental income, tax free.

•They can sell property within the IRA without having to worry about capital gains taxes.

•They can buy raw land.

•They can buy residential or commercial real estate.

•They can diversify by buying real estate in other countries.

•They can use a tax-deferred exchange inside their IRA to defer UDIT tax.

Mr. Hitt concludes, “If you enjoy real estate, you want the chance to use leverage within your IRA account to fund your retirement, and you are up for acting as a landlord, you should consider using a self-directed IRA to own real estate. This is a great opportunity afforded to us by our government; however, you need to be watchful of a few pitfalls. If you are mindful of those pitfalls, this is a phenomenal tool.”

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self directed retirement industry. Mr. Hitt and his team have grown the company to over $ 250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

To learn more about American IRA, LLC and self-directed IRAs/self-directed Solo 401(k)s, please contact our office at 1-866-7500-IRA(472).

As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms ). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville, NC.

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What You Should Know about Florida House Insurance

Article by Todd Meyers
























Florida, the Sunshine State, is a state recognized for its damaging tornadoes and hurricanes. No one has forgotten the devastation caused by Hurricane Andrew in 1992. Following Hurricane Andrew, Florida went through another serious of damaging hurricanes in 2004 and 2005. The everyday living of citizens was greatly impacted by the damage. The 500 companies that provide Florida house insurance were also greatly impacted by the storms. The number isn’t as high now since many of the business have moved from Florida or closed their service entirely. There are only about 40 Florida house insurance companies in the state.

Many of them are small companies and don’t have much experience relating to the subject of Florida house insurance.This has now confused residents. The million dollar question is how to find the right Florida house insurance company. A person may think after their house has been damaged an insurance adjuster will make a visit to their home and take note of the destruction and get their Florida hose insurance money fast. Below are a list of hints for selecting the correct Florida house insurance company.

Mainly, you should seek a company that has a strong reputation and a decent record. The track record company you choose can be checked by going through Association of Insurance Commissioners(NAIC) and entering their code number. You will be able to conduct a deep search into the rankings of the Florida house insurance company you want. You will want to know if they have enough expertise in this area and an excellent ability to compose policies and process the claims. Carefully go over their financial stability. Determine if the Florida house insurance company can fund high claim amounts and ranks high. Cautiously go over the chance variation and if the foundation of the policy is spread out over many counties or just restricted to those on the shore line. You are advised to select a Florida house insurance company with hat offers vast geographical coverage.

Next, examine their client support service. Client support is an important factor in finding a company. Sooner or later, you may need to get in touch customer service when a problem arises. Observe carefully to see if the employees answer your questions in the shortest time possible. regardless if your billing inquires are made top priority, asking these simple questions can give you an idea of the type of systems and skills about the Florida house insurance company you would like to use in time to come. Keep in mind that the coverage of you house and assets is an essential significance.Those things are too important to take a gamble on. You wish to make certain you have the right Florida house insurance company handling your claims.

About the Author

Visit Florida House Insurance for more information or visit our blog at http://floridaautohomeownersinsurance.com/basics-of-florida-house-insurance/.












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whereby the original author’s information and copyright must be included.

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Information about Residential Property Insurance

Article by Maria Jones
























When you bought Residential property insurance, bank financing needed to ensure the construction of at least a basic policy of fire insurance to protect banking interests, as the owner’s interest. Use of fire to raise the greatest concerns of life insurance as every year, billions of dollars is lost due to fire damage. Landlord insurance customers are likely to have heard of people who made a fortune in real estate investment, and some people who have lost money. Subject rental housing market comes up at every party. And the news is full of it.Depending on the type of insurance you have, you may be entitled to a claim for Loss of profit insurance from his injuries that occur in fire or any other factor that your company is insured. But to make such a claim, you should first calculate the revenue loss from the date of fire or flood, which can be a daunting and confusing.March is considered one of the valuable assets that you can have in this world. Since the country is that this concept is sacred and beyond the control of those who do not own. Even if the Land Surveyors Insurance was free, before the use of a population has grown so huge that most countries are now available to the public are entitled or by name. People who have ownership of the parcel of land or a profession or a clean title would protect the same person trying to rob them of property.Use of fire to raise the greatest concerns of life insurance as every year, billions of dollars is lost due to fire damage. Landlord insurance customers are likely to have heard of people who made a fortune in real estate investment, and some people who have lost money. Subject rental housing market comes up at every party. Planning consultants can provide advice and guidance to clients, regardless of the level of development proposed. For the largest developer, a business plan and system development, Town Planners Insurance helps you in understanding not only planning law, but politics behind him, the legal precedent and legal process complex, it may involve, it will take a team experienced planning consultants. Rental property insurance is insurance purchased by the landlord that the landlord or the holder of the Rental property insurance if the tenant customer, or someone is injured on the premises. Before anyone can find a claim, against the property owner must demonstrate that they are injured on the place and how they were injured.

About the Author

Even if the Land Surveyors Insurance was free. Town Planners Insurance helps you in understanding not only planning law. For more details please visit us at: http://www.glennstone.co.nz/












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whereby the original author’s information and copyright must be included.

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