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How do I know this investing my self directed IRA in real estate is legal?

April 26, 2017directed Investing IRA Legal Real Estate self

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How do I know this investing my self directed IRA in real estate is legal?

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This is a question we hear frequently. The fact is that you have been able to buy real estate with an IRA since the first day IRAs were created. Visit www.IRS.gov yourself, the Internal Revenue Service’s own website and search for Publication 590, which defines everything the IRS wants you to know about IRAs. On pages 40-41, you will see what you CAN’T do. You cannot purchase collectibles or life insurance contracts. You will also notice that real estate, financial paper, private placements, etc… are NOT mentioned as one of the asset types in which an IRA is prohibited from investing. Buying real estate in an IRA is just like buying Dell stock. Investing your IRA in real estate is just a purchase of a different TYPE of investment.