Ryan, I recommend finding an accountant that specializes in real estate taxation over one that is local.

Fahadbin,I recommend finding an accountant that specializes in real estate taxation.

I own two in the state of PA which I am trying to do a deed transfer into my LLC.. and there are costs associated with it.. while those will still be less compared to the interest rate being high.. its the better thing to do and start with imo... from a liability protection point of view and taxation.. much better as well...

I recommend finding an accountant that specializes in real estate taxation and understands house hacking.

My accountant said my father and I are half owners as we are both listed on the LA and as such there would be taxation on half the value of the home.

However, I recommend finding an accountant that specializes in real estate taxation over one that is local.

This exposes the IRA to UBI taxation at trust tax rates.Lastly, just be sure to work with a reputable attorney to draw up your contracts and record things like a mortgage via a title company.  

If this was an IRA or 401k then I certainly hope your friend has been informed of the IRS guidelines and the fact that he will incur UBIT (a special form of taxation on retirement accounts) on income resulting from these flips.

While the "real estate operating company" definition is very clear, that the intent is for purchase (does not state how) and holding and managing real estate, then the IRA is automatically exempt from taxation (Unrelated Business Taxable Income - UBTI).

Do you have to pay taxes on your monthly cashflow?