My neighbor approached me about possibly selling his property in the near future. I'm not extremely interested in his house or buildings, but I am interested in 8 acres of rough hillside pasture, that butts directly up against my home property. I believe he would be willing to partition off the back 8, if the price were right.
We are considered agriculture, but reside just outside of 3 different city limits. Each of the 3 cities are encroaching upon us aggressively, so this land could easily be considered an investment property, as future development expands. I personally want to buy it to keep it from being developed and to expand my hunting land.
I have read that doing a 50/50 % - Self-Directed IRA / Outright Purchase is a good way to purchase land that you want to hunt because you can't personally use or hunt any segment of the land that is within the IRA. Is this correct? If so, how are the land boundaries laid out and / or enforced?
Because it is currently pasture, I'd like to plant multiple trees seedlings. Is this allowed, or must I hire someone else to do it?
I would not pasture any livestock on it, I doubt it would qualify for any type of CRP, and it wouldn't be farmed, so it would not be making any profit what-so-ever. Because of this, would I have to continue contributing money into my IRA in order to pay property taxes, or could I pay them out of pocket from the 50% outright owned portion?
I have money in both Traditional IRA's and ROTH IRA's at TD Ameritrade. If I roll my Traditional IRA money into a Self-Directed IRA, will I be taxed or penalized through the nose at the time of the roll-over, or at the time of land purchase? Please correct me if I'm wrong, but I think ROTH IRA money would be issue free.
It is not absolutely necessary for me to be able to hunt this 8 acres, because I can always hunt my current land, but I most definitely want to plant trees in order to provide more local habitat that will hold more local wildlife. So, what I'm saying is that going the 100% IRA purchase route is always an option, vs the 50/50 % route.
I'm looking for input on the questions that I've asked above and suggestions for my best plan of action and where to start. Thank you all in advance.
Hardwood11 has been a strong contributor on some of the archived threads that I've read, so I'm hoping he jumps in with some solid advice.
We are considered agriculture, but reside just outside of 3 different city limits. Each of the 3 cities are encroaching upon us aggressively, so this land could easily be considered an investment property, as future development expands. I personally want to buy it to keep it from being developed and to expand my hunting land.
I have read that doing a 50/50 % - Self-Directed IRA / Outright Purchase is a good way to purchase land that you want to hunt because you can't personally use or hunt any segment of the land that is within the IRA. Is this correct? If so, how are the land boundaries laid out and / or enforced?
Because it is currently pasture, I'd like to plant multiple trees seedlings. Is this allowed, or must I hire someone else to do it?
I would not pasture any livestock on it, I doubt it would qualify for any type of CRP, and it wouldn't be farmed, so it would not be making any profit what-so-ever. Because of this, would I have to continue contributing money into my IRA in order to pay property taxes, or could I pay them out of pocket from the 50% outright owned portion?
I have money in both Traditional IRA's and ROTH IRA's at TD Ameritrade. If I roll my Traditional IRA money into a Self-Directed IRA, will I be taxed or penalized through the nose at the time of the roll-over, or at the time of land purchase? Please correct me if I'm wrong, but I think ROTH IRA money would be issue free.
It is not absolutely necessary for me to be able to hunt this 8 acres, because I can always hunt my current land, but I most definitely want to plant trees in order to provide more local habitat that will hold more local wildlife. So, what I'm saying is that going the 100% IRA purchase route is always an option, vs the 50/50 % route.
I'm looking for input on the questions that I've asked above and suggestions for my best plan of action and where to start. Thank you all in advance.
Hardwood11 has been a strong contributor on some of the archived threads that I've read, so I'm hoping he jumps in with some solid advice.
