Self Directed IRAs

[Jeff Thompson]

Dear Bigger Pockets Friends,

I have a self directed IRA from Pensco which was formed when i was a passive investor on a multifamily deal. Since then we sold the property but I have left the money in the IRA and would like clarification if anyone uses this for single family? I unclear on two things. Does all the cashflow return back into the IRA and will I have to pay taxes on the cash flow taxable within the year it is generated or not until i take it out?

Thanks, 

Jeff

[Gary Kane]

As long as it is in the ira, it will continue in its tax deferred status...you will not pay tax until you start making withdrawals (typically in retirement).

In my opinion, purchasing SFR with an ira is not efficient, as in rental property. Best to do a Buy and hold rental outside of an ira...but that's me.