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Old 10-31-2016, 09:34 AM
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Join Date: Oct 2016
Location: Oregon
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Early IRA withdrawl for commercial prperty

Hello,
I have a question about penalties for early withdrawal of part of my IRA for a commercial property purchase. What are the penalties for early IRA withdrawal? Can I write off the down payment of a business property purchase on my taxes, to help offset the penalties? We are currently renting for our business location, and our lease will be up soon. We are looking at some commercial property for sale, and wanted to look into the possibility of buying rather than renewing our lease. We don't have a lot of cash flow, so thought we might be able to use my personal IRA for the down payment. Is this a good idea? Any advice or help is greatly appreciated.

Tony



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Old 11-02-2016, 02:37 PM
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Join Date: Oct 2010
Posts: 4,835
Hello,
I have a question about penalties for early withdrawal of part of my IRA for a commercial property purchase. What are the penalties for early IRA withdrawal?====> If you withdraw money from your IRA before age 59 1/2, you will generally have to pay a 10% early withdrawal penalty in addition to income tax on the amount withdrawn. This means a $5Kwithdrawal taken by you and say your tax rate is 25% , then it would result in $1.75K in taxes and penalties. IRA withdrawals are considered early before you reach age 59?, unless you qualify for another exception to the tax. yu also need topay state tax on the early w/d.

Can I write off the down payment of a business property purchase on my taxes, to help offset the penalties?=====>Sorry no.



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Old 12-21-2016, 03:12 AM
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Join Date: Dec 2016
Location: US
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Early IRA withdrawal

There are few things you should specifically consider if you think using an IRA withdrawal for the commercial property could work for you. Strategic Tax Resolution will help you to know more about early IRA withdrawal.



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