Self directed IRA

Forum|Forum|6 years ago
September 16, 2019
1 reply
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purchased an investment property (residential) in 2017, renovated and sold in 2018. The asset was purchased through a self directed IRA that was established in 2016. Received a 1099-S form from the title company at time of settlement. How do I report this on my 2018 tax return (extension approved) since there is no tax consequence.

dmertz

Level 15

Was the property titled in the name of your IRA and does the Form 1099-S indicate that your IRA is the transferor?

Did you do any of the renovation work on the property yourself?

Did you pay for any of the renovation work with funds not held in your self-directed IRA?

rege7007Author

Level 2

1. Yes, property titled as " Equity Trust Co Custodian FBO Karen Ege IRA" The Form indicates that the IRA is the transferor. However, the transferor's TIN was left blank & Karen provided her SSN .( PROBLEM?) 2. Did no renovation work. 3. Did not pay for any renovation work outside of self-directed IRA What Next??

macuser_22

Alumni - Champ

Since gains or losses within a IRA are not reportable then nothing next. The 1099-S tells the IRS that it is in an IRA.

Just keep all records for work done and payment records in case the IRS ever questions it. The IRS usually audits within 3 years but can take up to 7 years. I would keep the records forever.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**