CalculateRealEstateROI

Taxes

Can I buy real estate with a self-directed IRA?

Yes — but no personal use, no related-party transactions, and UBIT applies on leveraged income.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Yes — but no personal use, no related-party transactions, and UBIT applies on leveraged income.

Expanded explanation

SDIRA real estate is tax-deferred (traditional) or tax-free (Roth). Strict prohibited transaction rules — violations disqualify the entire IRA. Solo 401(k) avoids UBIT on leverage.

Examples

  • SDIRA buying $100k cash rental; all rent and gain flow tax-deferred.

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