“As an investment within the self-directed IRA, I will be able to defer income and if I ever choose to sell this property, the tax treatment is very favorable long-term.”
Kurt notes that you don’t have to come into the game as a farmland real estate expert to make this type of investment, but just like with any type of investment, expect to take time to research the potential investments and be prepared to fill out some paperwork to get the deal off the ground. After that, he says, the required effort decreases significantly.
“I’ve hardly had to do much at all the last few months,” he says. “You get your cash rent checks from the farmer who rents the grounds, that goes directly to (Equity Trust), and it’s all kind of taken care of from there. There’s very little computer time or paperwork that you have to get into.”
Kurt credits Equity Trust for making the investment process easier and helping him discover the possibilities for his IRA through webinars and other educational resources.
“The company has been a real eye-opener to the potential of the self-directed IRA,” he says.
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Can my IRA purchase real estate that I currently own?
No. This is considered a prohibited transaction (see IRC 4975). You may not purchase a property, or interest in a property, that’s currently owned by a disqualified person, which includes yourself.
Can my IRA purchase real estate that my corporation, partnership or LLC owns?
No. This is considered a prohibited transaction (see IRC 4975).
Case studies are provided for illustrative purposes only. Past performance is not indicative of future results. Investing involves risk including possible loss of principal. Information included in the above case study was provided by the investor and included with permission. Equity Trust Company does not independently verify all information provided by third parties.