Displaying blog entries 1-2 of 2
New listings in New Castle County increased 6.36% in February compared to February 2014. The average sales price increased 7.30% compared to Feb 2014 and homes were on the market an average of 82 days.
.jpg)
Information courtesy of New Castle County Realtor Tucker Robbins, Berkshire Hathaway HomeServices.
You probably already know that you can invest your IRA money in stocks and bonds and even in mutual funds if you so desire, but did you know that you can also invest those IRA funds in real estate? Doing so, however, is a bit complicated, and IRS rules concerning such purchases must be followed to the letter.
Usually, when you take money out of an individual retirement account before you reach age 59 1/2, the IRS considers these premature distributions. In addition to owing any tax that might be due on the money, you'll face a 10 percent penalty charge on the amount. This is not the case, however, when you use the money to buy your first investment real estate. (Note: Technically, you don't have to be purchasing your very first home or building. You qualify under the tax rules as long as you, or your spouse, didn't own a principal residence at any time during the previous two years.) You can use up to $10,000 in IRA funds toward this purchase. If you're married, and you and your spouse are both first-time buyers, you can each pull from retirement accounts, giving you $20,000 to use.
The restrictions are many (and perhaps time-consuming) and include the following:
The above information applies only to traditional IRSs. To learn about the procedure for an Roth IRA, click here.
Information courtesy of New Castle County Realtor Tucker Robbins, Berkshire Hathaway HomeServices.
Displaying blog entries 1-2 of 2
