Benefits Of a Self-Directed IRA 💰 #selfdirectedira #realestate #thefreedomshow

Let's say somebody moves their $150,000 from their 401k over into a self directed IRA and then they want to buy a house for 110,000, put $10,000 worth of rehab into it and rent it out for $1,400 a month. They move their money over, they move their money out for that investment and then all their rental income comes back into their self directed account. And the beauty of it is that they eliminate taxation on those returns as long as they follow the rules and guidelines there's no taxes on the rental income and then when they sell that rental property there's no long term capital gains tax, there's no rec depreciation, there's no schedule ease, there's no reporting on a 1,040. What's nice about the self directed IRA is it allows an individual to be able to a like we've been talking about, invest in hard assets like real estate and B there's some pretty powerful tax advantages like I always say compounding interest in the absence of taxation.