They are licensed by the Dept of Treasury in taxation.

Manikia Liburd,Here is a thread in which I posted a DETAILED description of the taxation of LLCs.http://www.biggerpockets.com/forums/12/topics/76052-simple-taxation-questionsThe deductions are primarily the same; however, some of the employment tax and employee benefit deductions increase with the use of a separate entity.

I suggest you look to Generally Accepted Accounting Principals (GAAP)which are followed and still governs laws and taxation in finance and accounting.

If you do, you will have to pay tax at the corporate level and also at a personal level (called double taxation).

Robert, don't worry yourself with the particulars of the taxation or business entities for now.

Not sure on your local tax rates, but lets be conservative and assume 40% taxation since you havent owned 2 years.

If its an installment sale, some gains are reported each year.The IRS won't believe the 0% financing and will apply "imputed interest" and you will be subject to regular income tax at your ordinary tax rate on that.IMHO, this is not something to do casually.

Much of the information you will read here on BP can be universally applied, but be aware that in the areas of financing, regulation and taxation, there are differences between investing in real estate in Canada versus the U.S.A.There is a small regular cadre of Canadians wandering the virtual halls here - feel free too reach out anytime when you have questions.Looking forward to hearing more from you both.

Of that, $288K would be subject to the recapture tax at 25% and the remaining $360K would be subject to long term capital gains at 15%. 

There is the additional limitation as @Daniel Dietz points out, that they would only be allowed to "direct" the investments and could not participate with their own labor or the labor of parties disqualified to either IRA.Flipping is something that can be done with IRA funds, but comes with exposure to taxation known as UBTI, as this is viewed as a business activity as opposed to a passive investment such as rental income or note payments received.