So I have some property which I own in a partnership and I am about to buy out the partner. Because of the nature of these properties (and my current cash situation) I'd rather own them in my SDIRA than personally. Can the SDIRA buy them from the partnership at cost?
Yes, i think you can. As long as there is no mortgage involved; your attorney deeds everything to the IRA; and the IRA has enough funds to cover the mortgage and expenses for life.
I dont think you can contribute anything to the IRA, for repairs and such. It all must come from the IRA and rent check must go directly to the IRA.
Seems like a very very bad move to me, but id bet it can be done.
My understanding is this would be considered "self dealing and would be prohibited.
You might look to see if a LLC that's part SDIRA and part personal, could be used to accomplish this.
or can non-personal "entity" buy from the partners, and then sell to the IRA?
[ Edited by cjmazur on Date 11/29/2008 ]