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Land

Earnhardt said:
I read that any money made off of IRA land has to go back into the IRA. (cash rent)


And the taxes need to be paid by the IRA account...

Is this true?
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Yes, any income goes into the IRA and then you can pay expenses or taxes out of the IRA. You cannot cash the checks yourself. A custodian will handle all the transactions for you. They do charge you a yearly fee.

A self directed IRA can be a bit of pain, but I am very glad I set mine up. I have a nice asset now that was previously a small pension.
 
arm said:
Well fellas, call me crazy but there isn't a "land IRA." Its simply a self directed IRA where you invest in real estate which can include land. Self directed means you make the decisions on what/where/when investments are gone. Its a business transaction...everything must come out of the IRA and everything must go back in. I'm sure there's tax implications including penalties if you don't follow the law. I don't know any more of the specifics. If it were me, I'd talk with a financial planner or my accountant and get the facts
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My experience is very few people are experts on self directed IRA's...not all accountants and financial planners have a firm understanding.

Read up and ask a lot of questions. Personally, I can recommend they work well on a farm that is either all tillable or half tillable and you can put the half that is tillable in the IRA, and the timber out of the IRA.

CRP does not work as well in an IRA, Pasture would work if you rent it to someone else. All income has to come from another person, you cannot farm the land yourself in an IRA. Timber/logging is another possible income source.

The IRS is not likely to come and check to see if you are hunting your IRA portion of the farm, but I guess you never know??
 
I recently left my job for the sole purpose of getting to my annuity so I could role it into a S D IRA for the purpose of buying ground
There is a 18 month waiting period before I can get to my money and start the process of buying ground. I have 12 months to go!!
If there is anybody on here that has good info on these transactions or know the right #'s to call it would be much appreciated.
Who knows with the right info I might have a tree you can set in down the road
 
I actually looked into this SD IRA a few year back....never pulled the trigger but was intrigued. You obviously have looked into this but for others, there are two people i would for sure talk to before doing anything. 1.Financial advisor 2. CPA/tax strategist.
 
brown6110 said:
I recently left my job for the sole purpose of getting to my annuity so I could role it into a S D IRA for the purpose of buying ground There is a 18 month waiting period before I can get to my money and start the process of buying ground. I have 12 months to go!! If there is anybody on here that has good info on these transactions or know the right #'s to call it would be much appreciated. Who knows with the right info I might have a tree you can set in down the road
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I thought land IRA's were strictly prohibited from being used in any shape or form. Like you can't even set foot on it technically. Am I missing something?
 
hoosierhunter said:
I thought land IRA's were strictly prohibited from being used in any shape or form. Like you can't even set foot on it technically. Am I missing something?
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my goal is to use my SD IRA to create a substantial income over the next decade that flows right back into the IRA. By creating this continuos income flow I think I will be able to purchase more ground on a consistent bases or at least have that option. Like all great hunters I must have patience.
I just didn't want to fallow the norm of working my whole life to build up a retirement account that I can't touch until I'm over 60 then try and go out and buy that special piece of property. For one I might have already met my maker by then or 2: I don't want to set around in this corrupt world and hope my money will be there when that time comes.
And yes if you want to go watch the sun rise or set on your IRA ground I don't think you will be breaking any laws!!
 
Sd ira

I have looked into this as well.
Hardwood11-how did you find the right custodian? What do the yearly fees look like? I was wondering if your current IRA contribution and employer match can keep feeding the SD IRA?
The income from the farm must stay in the IRA.
 
Example= If you bought a farm for $300,000.00, put 20% ($60,000.00) down, financed $240,000.00 for 15 years @ 3%, your payment will be $1657.00 per month.
 
Jerrod said:
I have looked into this as well.
Hardwood11-how did you find the right custodian? What do the yearly fees look like? I was wondering if your current IRA contribution and employer match can keep feeding the SD IRA?
The income from the farm must stay in the IRA.
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I use Equity Trust, not sure what other companies are out there? They have been good to work with. Fees are around $400 per year I think.

Third question, I don't know on that??
 
Non-typ. said:
Example= If you bought a farm for $300,000.00, put 20% ($60,000.00) down, financed $240,000.00 for 15 years @ 3%, your payment will be $1657.00 per month.
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3% must be a variable rate.... ? I am in the process of purchasing some more ground right now. Everything seems to be around 5% on the commercial lending side unless it is variable rate. With the way our president has printed money, rates going up are inevitable. A variable rate would scare me in a long term holding strategy.

USDA subsidized loans are another story. Much better rates, but I am finding a lot more BS involved. Catch 22 I guess.
 
Depending on the size of the farm you could refinance your house if you have enough equity and that way you lock in the rate for 15-30 years and it won't be variable.
 
Tim Hull said:
Depending on the size of the farm you could refinance your house if you have enough equity and that way you lock in the rate for 15-30 years and it won't be variable.
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I'm locking in and willing to pay more for it. If I had a flip property I would be willing to go after the 3% rates and move on....

You can get lower rates with the USDA loans locked for 20 years but I am learning it may be more of a headache than its worth..... like most anything involving the government I suppose.

Speaking of the government....try this one on for size.... closed on a property October 1, 2014. I got my CRP contracts LAST WEEK. Government is fast and efficient right?
 
Anything involving the government and FSA is going to involve tons of paperwork, employees that don't always know the rules because there are always changes and loooong waiting periods.
 
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