6 Rules

Six IRS Rules that must be followed for Self-Directed Real Estate IRA's

1. You may not personally own the property or other non-traditional investments purchased by your plan.

2. You must ensure that your intended purchase is not a prohibited transaction. A prohibited transaction involves the improper use of your IRA or Qualified Plan holdings by you or any disqualified person. A disqualified person is any member of your immediate family (except siblings), employers, certain partners, fiduciaries, and other categories specified in IRC Section 4975.

3. It must be for investment purposes only.

4. Neither you, your spouse, nor your family members (other than siblings), may have owned the property prior to its purchase by your plan. Your IRA cannot loan you money and you cannot use your IRA as collateral for personal or business loans.

5. Neither you nor your family members (other than siblings) may live in or lease the property while it is in your plan.

6. Your business may not lease or be located in or on any part of the property while it is in your plan.