Important Questions to Ask When Selling Real Estate in Your IRA
Is the property an investment or business inventory? The IRS will allow a tax-exempt organization (IRA or 401(k)) to engage in a passive activity that generates capital gains, interest, rental income, royalties, and dividends without incurring any tax (IRC 512). However, if the IRA/401(k) engages in an active trade or business, such as a restaurant,…