|
|
|
|
| Author |
|
|
Registered
Join Date: Jan 2002
Location: Long Beach CA, the sewer by the sea.
Posts: 37,954
|
Buying real estate with 401K ??
Seems to me there are a few theories (maybe facts) floating around about tax write offs, deferments and no early withdrawal penalties for 'certain' purchases.
I've even heard that in CA if 3 or more partners buy income property with no partner owning over 49%, that the property tax won't be reassessed. If true, a long time owned property with low taxes due to Prop 13 would stay at the current assessment. That one's a stretch to me. Back to the first question: rentals? 2nd homes? multi family? Period before conversion allowed. What can you tell me? I can't find much on the Net. |
||
12-16-2008, 08:29 AM
|
|
|
Registered Abuser
Join Date: Jul 2007
Location: Southwest Montana
Posts: 2,738
|
You can purchase and hold Real Estate with in a 401K
Self directed IRA Here are some guidelines and explanation http://articles.moneycentral.msn.com/Investing/Real Estate/GroundYourRetirementFundWithReal Estate.aspx Be careful there are a lot of snake oil connections out there. They can be a great thing if structured correctly, especially now.
__________________
MT 930 1987 930 - Gone but not forgotten A man with priorities so far out of whack doesn't deserve such a fine automobile. I would rather wake up in the middle of nowhere than in any city on earth - Steve McQueen американский |
||
|
12-16-2008, 08:44 AM
|
|
|
Registered
Join Date: Jun 2001
Location: St. Louis Missouri
Posts: 1,454
|
The company I'm with offers a one-owner (or owner and spouse) 401k. A lot were set up the past couple years with real estate as the only asset.
When the real estate boom collapsed so did our additions of these plans, but we still offer them. Now would actually be the better time to get in one, I expect. http://www.bpp401k.com/401k-plans/details.htm |
||
|
12-16-2008, 12:32 PM
|
|
|
Registered
Join Date: Jan 2002
Location: Long Beach CA, the sewer by the sea.
Posts: 37,954
|
MT930, linky no exist.
|
||
|
12-16-2008, 04:34 PM
|
|
|
Somewhere in the Midwest
Join Date: Oct 2001
Location: In the barn!
Posts: 12,499
|
Try this, Milt.
http://articles.moneycentral.msn.com/Investing/RealEstate/GroundYourRetirementFundWithRealEstate.aspx I read it...and I'm confused. Can one buy property using one's 401k account as long as it isn't a vacation home or on rented back to the buyer? |
||
|
12-16-2008, 04:48 PM
|
|
|
Registered
Join Date: Jan 2002
Location: Long Beach CA, the sewer by the sea.
Posts: 37,954
|
Thanks. I read it and the rules are certainly complicated. One thing I do understand is the non ability to depreciate income property owned thru a 401K. Since one has to pay capital gains on any amount depreciated upon sale (with a profit), and since property generally goes up in value over time, I see this as not any kind of obstacle or negative.
The article makes it seem as if the best way to do this is to have all cash for a purchase. I'm not in that position, for sure. |
||
|
12-16-2008, 05:00 PM
|
|
|
