Can I use my IRA/401K or RRSP to purchase property?

How to Purchase Real Estate Using an IRA

All expenses are paid by the IRA, and all income belongs to the IRA.  When properties are purchased with cash from an IRA, no taxes are due when rental income is received, or when the property is sold.  There is no need to go through the expense and complexity of 1031 tax-deferred exchanges, as the entire IRA is tax-deferred (tax free within a Roth IRA).

Many of the American RE/MAX clients here in Costa Rica have taken advantage of the flexibility that purchasing an investment through your IRA or 401K offers.

For more information, contact Tyler Carter at NuView Trust for more information.  Email:

As for the Canadians, we may see some changes in the CRA rules that will allow us to use the funds in our RRSP accounts to purchase foreign properties but that’s not the only option.  Many Canadian investors are starting to pull funds from their RRSP accounts and use that money to purchase a vacation home. They take the tax hit and start enjoying their retirement early.

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