Do I report income and expenses from a self directed ira with a rental?

[MinhT]

You do not report the income and expenses from a rental property in your self-directed IRA on your personal tax return.

Reporting income and expenses in a self-directed IRA have to follow strict rules and any errors may lead to fines and tax consequences. Please ask your IRA trustee.

[gstoff]

where do I report it if not on my personal tax

[MinhT]

You do not report earnings and expenses in an IRA anywhere as they are tax-deferred.

[gstoff]

So you don’t have to figure/enter depreciation of a rental property that is held in a self-directed IRA, on a tax return either?

[gstoff]

BTW- Thank you TurboTaxMinhT

[MinhT]

No.

[MinhT]

You're welcome!

[Navtex]

This was my understanding, but my property manager said he was obligated to complete a 1099 showing rental income, even though he deposited the rents straight into my Roth IRA.  When I inquired with the custodian, they said that the property manager is correct in completing the 1099 under my SSN and I would have to handle this through my tax return.  So, how is it handled for 2019?  Do I just ignore the 1099?  I doubt the IRS will.  :(

[DianeC958]

If you receive a letter from the IRS about the 1099 for the rental property that is part of a Self-Directed IRA the trustee for your IRA can help you resolve it with the IRS.

@Navtex 

[Navtex]

PROBLEM SOLVED!

What I did not know, and my custodian finally share with me, is that I should have registered a new EIN just for the IRA on the IRS website.  Didn't know I could do that, and it took all of 5 minutes.  Once I had the EIN, I provided my Property Manager with this and he completed the 1099 using the ROTH IRA's EIN, not my SSN.  I may now have to complete a 990-T form (Exempt Organization Business Income Tax Return) to match up with the 1099-MISC. 

[Lehanb]

So, I have multiple properties and Vrbo and Airbnb are reporting my income on the 1099. That income includes a home held in my self directed Roth  Ira. How do I handle that on the tax return? Take a deduction for the income?

[BillM223]

You should do what Navtex did above - get an EIN for the house owned by the IRA. That way, the income and deductions for the IRA-owned property will not be mingled and reported as part of the for profit VRBO and Airbnb operations (i.e., not on the same 1099).

When you get the EIN, see if you can get the two rental companies to change the 2024 1099 (they probably won't), but you can at least change the reporting going forward.

Your issue is that the 1099 will be reported on your tax return, but the amounts from your IRA-owned property should not be reported on your tax return. You will have to

1. Find out how much of what is reported on the 1099 is attributable to your IRA property, and

2. Find a place in TurboTax to back it out.

Since I don't know which 1099 it is, and how you are reporting it in your tax return, I can't advise further.

You should keep your own full records of the Vrbo and Airbnb operations in the IRA, but the IRS does not want to see this, unless you are subject to an audit (in which case, you will be glad that you kept them).