Season’s Greetings from Uncle Sam
It’s the Most Wonderful Time of the Year… time for tax invoices! Now is the time of year that our local counties start mailing those much loved property tax invoices to real estate owners. Recently, we have seen a huge spike in the number of tax invoices submitted for payment. As Real Estate is one of the most popular investments in self-directed retirement plans, we expect to see many more. Have you received your early holiday present this year? If you have a retirement plan invested in real estate, chances are that you already have. Many clients have called in with questions in regards to property taxes and how or if they should pay them. Firstly, if you have invested in Real Estate using your retirement plan, keep in mind that all expenses associated with the property must be paid by the retirement plan. Vice versa, all income produced by the property would return to the retirement plan as well. When you receive your property tax invoice, take a look in your records to verify what percent of the property your retirement plan owns. In many cases the retirement plan owns 100% of the property, which means that the plan is responsible for paying 100% of the tax amount due. The process to submit a tax invoice for payment by your retirement plan is very simple. The retirement plan account holder would simply fill out our payment authorization form (to show that we had the account holder’s permission to pay the invoice) and mail, fax or email it in to us along with the tax invoice. Upon receipt of the payment authorization form, we would then cut a check out of the account and place it in the mail. There are also other scenarios that you might encounter, for example, sometimes there are tenants in common, (meaning that the property is owned by more than one party, with each having a percent ownership). If there are multiple owners for one property, each party is responsible for paying its share of the tax invoice. A common situation is if an IRA holder owns 50% of a property personally and his IRA account owns the other 50%. In this case, the bill must be paid 50% by the IRA holder personally and 50% by the IRA account. We understand that this time of year is very hectic for most individuals. If you have any questions on paying a tax invoice or on buying real estate in an IRA, please feel free to contact us at 239-333-1031. AdvantaIRA Trust, LLC is a self directed IRA administrator. We do not advise clients, we educate them. We believe that individuals should have the freedom to direct their own accounts and invest their retirement funds in what they know best, be it real estate, private mortgages, notes, precious metals, private stock, etc. We offer specialized knowledge in the field of self direction and allow our clients to invest with confidence, knowing that they have an advisor with their best interests at heart… themselves.
