Holding note - do you get tax advantages

[Eric Hrlbock]

Hello BP community,

I am selling some properties to spend a-little more time w family and get ready for my next big move. I was thinking of taking advantage of compound interest. I never heard or saw anything about tax advantages or disadvantages of holding note or paper on properties that you are selling.  

Can anyone share real life experience, was it beneficial or a bad idea.  Please share your experience or stories with hold note on a property 

[Mike Hartzog]

Interest is regular income, so no tax advantage. Best to hold them in a self directed IRA. If you are selling with owner financing, that approach can help you spread the gain out over multiple years, so there can be advantage there.