Invest in Utah – Mountain Bike Rentals

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April showers have made way for sunshine, so temperatures are on the rise and it’s time to get outside. As such, May is National Bike Month, which promotes initiatives that encourage otherwise stationary or car-inclined folks to bike to work or school, broaden horizons for outdoor exploration, or even try biking for the first time.

We in the Rocky Mountain area have stashed our skis and can now begin checking tire pressures and oiling bike chains. Those seeking a new spin (pun intended) on bike-related adventures should consider a visit to Utah to experience diverse terrain and a pleasant springtime climate. Our 45th state is home to Moab, Arches National Park, and Monument Valley. These, among other unique destinations in Utah, feature some of our country’s most incredible scenery and outdoor adventure opportunities.

From day rides through towering buttes to more extreme mountain biking pursuits, the Beehive State offers anything an outdoor enthusiast could want. Having recently visited Moab for the first time, I couldn’t help but notice how local businesses were literally tailored to the landscape. Specifically, mountain bike rental shops provided out-of-state visitors the chance to check out the famous Slickrock Trail, or take a more casual ride through any stretch of the region.

As with most businesses, a rental shop can be owned by an individual retirement plan. Self-directed investors are becoming more aware of rental properties as potential retirement assets, but may not consider non-real estate rental companies as viable possibilities. Private equity is another common strategy, and your new bike shop could fall under this category. The business itself can be held as an asset in your IRA or 401(k), with any expenses paid by and any income returned to the plan. You must also consider disqualified persons, as you and anyone in your direct family (parents, children, their spouses, etc.) must always remain at arms length from business operations.

Fair market valuations and unrelated business income tax (UBIT) may apply as well, but New Direction IRA is always available to assist with the logistics of alternative investment options. The idea of a bike shop in your retirement account may seem farfetched, but it’s absolutely possible. Feel free to contact our office for more information about abstract but potentially lucrative ways to invest for retirement.

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