In other words, you can not pay yourself income from profits generated from your IRA's rental property and you can not pay yourself a property management fee from the IRA.UBTI/UDFI: This third category is most confusing and you should consult with a very (and I mean very) experienced accountant or tax attorney familiar with SDI's and the taxations involved.In a nut shell, this tax was formed to level the playing field between IRA owners and the general business public.

Dave, while your advice seems on target with respect to taxation, I really do not agree as far as your comment concerning liability protection offered by the LLC.

As for funding -- will there be a Greenhaven Board of Education (with Decatur-level taxation)? 

Kind of late to the game but I just listened to this podcast and was wondering if someone could clear something up for me.Around the 54 minute mark, the topic of multi-member LLC taxation comes up.

Even with such taxation, however, it can be quite beneficial to flip houses in an IRA.  

I search the property on the State department of assessments and taxation to see if the owner's mailing address is the address of the property.

If your rent property less than 6 months at a time (I believe this figure is right) then there are some county and state specific taxation that you will have to deal with.  

I currently have 3 free-and-clear rental properties in a single-member OH LLC (I live in CA).  Since that LLC is a disregarded entity for tax purposes, I use Sched E on my personal return to account for the OH rentals...

The primary disadvantage of a "C" corporation is double taxation.

I largely just want to avoid the logistical headache of operating a second LLC and I really don't want to face double taxation.