Property Income and Expenses

All real estate expenses and income must be managed through the self-directed IRA.

You do not want to mix personal funds with the income or expenses of your IRA. All transactions should flow through the IRA to avoid tax penalties.

For example, with rental income, the tenant would make the rent check payable to your real estate IRA and send it directly to Advanta IRA for processing and deposit in the account. The check from the tenant would read “Advanta IRA FBO John Doe IRA #12345.”

When expenses for the property are incurred, you would contact Advanta IRA and instruct us to cut a check from your IRA account for a particular invoice. Please note that under no circumstances should you personally pay for an expense related to your IRA-owned property. Advanta IRA will not issue any reimbursement checks to you from your IRA.

Because all expenses related to your real estate IRA must be paid from the account, it is critical the account has adequate funds to cover any expenses that may arise after the initial purchase of the investment. Examples of such expenses include property management, maintenance repairs, escrow funds, property insurance, etc.

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