Question for CPA about using IRA

[Kathy Patterson]

I am interested to know how using a tax-deferred retirement account to purchase a rental would affect my ability to use depreciation. On the surface, it seems that you would not be able to depreciate an asset in a tax sheltered account any more than you would be able to write off stocks that went down in value inside an IRA. Is this correct?

Also, when I eventually sell the property and am required to begin withdrawals at age 70 1/2, wouldn't my withdrawals be taxed as ordinary income vs being taxed as a more favorable long term gain outside my IRA?

Thank you,

Kathy