When an investment is sold by my IRA, can I keep the profit that is above my initial investment?
All income generated from self directed IRA investments must be deposited back into the IRA. Of course there is no income tax on this profit until the IRA begins its annual distributions. However, investors may incur unrelated business income tax (UBIT) on a portion of their investment income if the investment was made using borrowed funds.
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Diverse Investments for Self-directed Retirement Accounts
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We'll discuss a variety of investments you might be interested in exploring:
- Short sales
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- Tax liens
- Precious metals
- Investing in private businesses