Advanta IRA Trust – Real Estate IRAs

For Immediate Release – February 1st, 2012- AdvantaIRA Trust, LLC is excited to announce the expansion and opening of their newest office in the Miami area. AdvantaIRA specializes in Self Directed IRAs specifically real estate IRAs and private lending in IRAs. Advanta has been in business in Florida for over 9 years with offices in Fort Myers and Gainesville. The new South Florida office will be located at 950 South Pine Island Road,. AdvantaIRA prides itself on tremendous service and enthusiasm to help clients meet their financial goals. The new office will be led and managed by Kevin Collins, an experienced professional in the Alternative Asset Industry. The Miami phone number is 786-275-5870

For more information on AdvantaIRA Trust and the services they offer go to www.AdvantaTrust.com

There was an interesting article in today’s Wall Street Journal that detailed Presidental hopeful Mitt Romney’s IRA and what he owns in it.  Low and behold Mitt has a self-directed IRA.  Mitt holds several private and alternative investments.  Most notably in his portfolio is a Bain Capital shares or membership interest.

Mr. Romney has a excellent tax planning team that has layered his investments for liability protection and tax sheltering.  The article was correct on many key facts.  The article pointed out the IRAs that own businesses are subject to UBIT tax.  They were not sure if Mr. Romney was paying UBIT becasue of the offshore corporation that was set up for asset protection. I would assume he is not paying UBIT because that is the way the law does not require if if you own an offshore corporation. Read the rest of this entry »

Self-Directed IRAs offer investors unique opportunities to diversify and purchase tangible assets in retirement accounts. Several Real Estate IRA companies have combined efforts to track investment purchases of
real estate or real estate type assets in IRA accounts in Florida.  Real estate type assets would include notes/mortgages (private lending), tax certificates or LLCs that purchase real estate. Read the rest of this entry »

The old saying goes opportunity is the mother of invention, and it definitely holds true for investors in today’s economy .  The bank’s pain can be an investor’s gain. We have seen many IRA investors purchase bank foreclosures or REOs, but there is another opportunity with a large upside available to investors.

Many banks have decided not to hold their troubled debt properties to foreclosure, and have opted to instead sell the note and mortgage as an asset.  These troubled debts are usually sold at a deep discount, offering the investor great opportunities.  Different scenarios for the investor include restructuring the debt with the borrower, or holding the note to complete the foreclosure process.  While this investment strategy is not for the new investor,  it can be a smart move if you get professional due diligence on the asset. Read the rest of this entry »

How many times have you heard it said we live in the greatest country in the world?  We have running water in every building, store shelves are stuffed to the hilt, and pretty much the best health care in the world. We are not perfect, but we have it pretty good.

Today, we had one of the largest drops in stock market history. For retirees and soon to be retired, this is their worst nightmare.  The last five years have been a disaster that continues to have no resolution in sight. Who would have ever believed it would come to this?  I heard CNN blame Europe for much of our economic problems the last week, but our own house is a mess, and there is no leadership in sight from either party. Read the rest of this entry »

When someone hears 1031 exchange, they think real estate, but 1031 is incredibly diverse and flexible with a little planning. One sector of 1031 exchange that has really taken off is GOLD.  Yes, you can exchange gold for other gold.  Why exchange gold? If it is done properly, you avoid all the taxable gains on your sale.  Gold and silver are taxed at a hefty 28%.  With a 1031 exchange, you can keep that 28% of your gains in your pocket to reinvest.  Also, with gold there is no recapture tax as in real estate.

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Under the current law, a reverse 1031 exchange can be accomplished by following Revenue Procedure 2000-37.  Under this technique, the Exchangor or Client typically purchases their replacement property before they have secured a buyer for their exiting property, and parks title to the replacement property with an Exchange Accommodation Titleholder (EAT).  Most Qualified Intermediaries also act as Exchange Accommodation Titleholders.

This technique is very common, and used by a number of real estate investors.  The three common errors to note are: How will the client pay for the replacement property? Can the client close on the sale of their relinquished property 180 days from the date the new replacement property is purchased? Has the client priced the relinquished property to sell?  There is no recourse if the client does not sell their relinquished property in 180 days.  At that point the EAT would have to return the replacement property to the client.

 Does this sound confusing?  Well, it is, but a qualified exchange company should be able to handle the transaction with very little problem.

 One issue that a slow real estate market can cause in a reverse exchange is the relinquished property does not sell within the 180 days.  Recently, the IRS released a private letter ruling regarding a technique that could help a failing reverse exchange where the relinquished property has not sold by the 180^th day.

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In our changing economic times, it is more important than ever to focus on our retirement planning and financial futures.  For most of us, we have never seen the wild ride that the financial markets have shown us the last few years.  Just as we check our calories, blood pressure and weight on a regular basis, how are we doing with our finances?   It may be time for a routine check-up.

Studies have shown us the average American spends more time annually on vacation planning than on financial planning.  There was also a survey by Aetna claiming 31 percent of pre-retirees would rather clean their bathroom or pay bills than plan for retirement.  Allstate used to have an ad that claimed last year Americans spent 19 hours planning for their retirement. That’s about the same amount of time they spent planning their Thanksgiving dinner. 

So how do we get started and what are our choices today?  Unfortunately, retirement planning is not something the faint of heart can jump right into, but it can be done and with a little practice, it does get easier.  Here are some tips:

Read the rest of this entry »

Press Release – February 15, 2011.  Dave Owens, CPA, CES is proud to announce his newest publication, TFS Briefs.  TFS Briefs focuses on current news and technical topics that will help investors save money by thinking outside the box in their investment approach, particularly in terms of retirement planning.  These Briefs will be used by individual investors as well as professionals, including accountants, attorneys, financial planners and realtors.  The first four Briefs have been posted online and cover the topics of Prohibited Transaction, Required Minimum Distributions, IRA Contributions 2011 and 1031 Exchanges.  To read the current TFS Briefs, please visit www.tfsBriefs.com. 

TFS Briefs is written to examine topics used by individuals interested in understanding and taking control of their financial situation, covering topics ranging from investing in real estate, retirement planning, and changes in tax law.  Going forward, TFS Briefs will be written monthly and disseminated to subscribers.   To subscribe to TFS Briefs, please visit www.tfsBriefs.com. 

Dave Owens, CPA, CES is Managing Member of Entrust Freedom, LLC and  can be reached at 239-333-1031 or owens11@entrustfreedom.com.