Money Forum World

Amado · Joined: 08 Nov 2007 Posts: 2098

Convert Real Estate Investment to Tax Sheltered Stock Market Account How?
If I have a big amount of money invested in real estate, is there any way get all say $100,000 of that money into a tax sheltered account like an IRA from which I can invest in the stock market? Im not interested in doing 1031 exchanges, and the property isn't proper for renting. I believe the current yearly bound for an IRA is $4,000, so that wouldnt work. Is there anything else out there? Thanks for your help.

Jeanne Humphrey · Joined: 08 Nov 2007 Posts: 2164

Yes, supposedly there's a way by using Private Annuity Trusts aka PATs . Unfortunately, there are not many businesses, attorneys, accountants, and realtors who are familiar with the.
The best thing to do could be to check out the following links to see a description of how they work:
patplanner.com/
The following link reprints an article published last month from the Wall Street Journal about the use of these Trusts.
traceyrealtor.com/Private_Ann.

Keri Hunter · Joined: 08 Nov 2007 Posts: 2119

The better question isn't how but why? With the exemption of some dot comers who made big bucks in the stock market real estate is usually a safer investment with higher yields over the lasting for the average person. If youre dealing with management issues, there are lots of different kinds of real estate investments ie: Single renter Net Lease or NNN Lease that require virtually no management you just get a check every month and make your loan payment . despite, youre best off calling a local CPA or your bank talk to a financial consultant for any tax tell.