Can my IRA REAL ESTATE LLC make loans to businesses or companies?
Sure. Your IRA can make a loan to any type of business. However, be aware that there are some restrictions on loan money to any business that you or any other disqualified person has an ownership interest in. Do taxes and penalties apply when I take money out to buy real estate? No. You DO NOT take money out to purchase real estate or anything else you want to buy. It is just a purchase of your IRA or your IRA REAL ESTATE LLC. There are no taxes or penalties. Instead of buying 1000 shares of Microsoft or any other typical stock, your IRA is just making a different type of investment. The method of doing so is different but the tax ramifications are the same.
