As mentioned previously, there is a procedure for applying for a prohibited transaction exemption. The application process can be time consuming, and there are certain types of transactions that have a better chance of approval than others. One of the types transactions involving an IRA which is sometimes granted involves a “disqualified party,” e.g. the IRA owner buying real estate from his IRA. Moreover, this transaction may even be granted an exemption on an expedited basis (called the EXPRO program). The IRA must not incur any transaction costs and the purchase price must be based on a valuation of the property determined by a certified appraisal, among other things. At the end of the transaction, the IRA (which may have been ill-liquid) holds cash and the IRA owner has the real estate. The most recent example of an approval such an exemption granted to an IRA on an EXPRO basis can be found here.