Self-Directed IRAs - SDIRA - Explained

The Real Estate Reality Show

Today's episode is the next in my series covering some of the key tax benefits of investing in real estate and my guests are the CamaPlan duo of Joe Fulvio and Will Mucker. CamaPlan is a company that specializes in self-directed IRAs (SDIRAs) and Joe and Will share their insights into how to create SDIRAs, the regulations around them, and how they can be used by real estate investors.

We begin by defining SDIRAs and exploring how they differ from traditional IRAs and 401(k)s and then we focus on how investors can use these accounts to invest in real estate syndications to generate tax deferred (or tax free) returns.

A significant portion of our discussion covers the tax implications of using an SDIRA and the push back you may have heard from your accountant – as I did when I first researched this type of retirement planning. We cover the concepts of UBIT (Unrelated Business Income Tax) and UDFI (Unrelated Debt-Financed Income), which can trigger taxes within the SDIRA under certain circumstances and is what led to my accountant advising (erroneously it turns out) against using these instruments.

You’ll learn two main things from today’s podcast; one, you should definitely investigate setting up and SDIRA if you have not already done so, and two, to ask your accountant for more information. These things are not as easy as they appear at first glance so working with someone knowledgeable is going to be important.

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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.

You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.

You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn. Subscribe to our free newsletter here.