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Ecuador IRA News

Here is some excellent Ecuador IRA news.

A reader recently sent me this note after reading about the Ecuador agricultural expedition:  Hi Gary,  I am interested in an investment in Ecuador agriculture and would like more information.

I have a self-direct IRA and use this for investments. Even though I know little about farming and agriculture, this seems like a perfect opportunity to invest in inflation-proof assets.
Does the cost of $1990 include the tour,  food, hotels and travel?
I know I can purchase the land and farm with my IRA funds, but can I use my IRA funds to pay for the flight and/or cost of the tour as a cost of the investment.
If my son came with me would the cost be $2990.  What are the exact dates to be there and when would I leave?
What is the best airline to use and where would we fly into. I live in the Tampa area?   Thanks,

I replied:  Jean Marie Butterlin who conducts these tours will answer your questions regarding the tour, costs, airlines etc., but concerning the IRA I have copied a freind who administers many IRAS that hold Ecuador real estate as he may know the answer whether an IRA can pay such fees.

This administrator sent this note:  Gary has asked that I answer your question regarding expenses related to your IRA and future investments it may chose to make. At this point I have to give you the standard disclaimer I am sure you get from everyone.  We don’t provide tax or legal advice and you should always consult with your own legal counsel.

The IRS rarely, if ever, says what you can do. Instead they prefer to tell you what you can’t do providing obscure guidance. I did seek the opinion of another source on the matter who confirmed my position.

“if the property is an authorized IRA asset, it is likely that “reasonable” expenses would be allowed. Any expense would have to be within the usual IRS deductible limitations, and personal time would have to be strictly accounted for.”

If you need something more specific than this you will need to seek a Private Letter Ruling from the IRS.

I hope this is helpful.

We have assisted many many clients in the purchase of real estate outside of the U.S. and quite a few of these transactions have occurred in Ecuador. Please do not hesitate to let me know if we can be of service in this matter.

This means (and you should check this with your own IRA administrator) that you may be able to write off the cost of the Ecuador agricultural tour if this is the sole purpose of your trip to Ecuador and if you have agricultural property owned by your IRA.

Subscribers to International Business Made EZ can see more details and contact information for the administrator by clicking here.