That tax applies when a tax-exempt entity engages in a trade or business (i.e. flipping houses) on a regular basis. 

Maybe they even engaged a consultant to help determine the date.

But yes, being that it is an FHA loan, you will have to kick a tenant out of one of the units.I too will have to engage in the same practice in the upcoming months. 

Engage other users and major influences who blog about similar categories.4.)

I'm new but I'm considering engaging family and friends to see what's possible in the areas they live in.Anyway, thanks again for the warm welcome.

@Michael MozieFlipping houses is considered a business and if done on a frequent basis would not be 100% sheltered under the umbrella of a self-directed retirement plan.Such plans are fully tax sheltered when receiving passive income, which includes interest, dividends, royalties, and rent from real property.When a tax-exempt entity is engaging in a trade or business on a regular or repeated basis, then a tax known as UBIT (Unrelated Business Income Tax) applies to the gains.  

Especially with being a Realtor, you might want to do some research before you engage in this type of transaction. 

You should really consult an attorney and CPA in FL and CA to get the entirety of information one would need when engaging in such an endeavor.  

Just engaged and learn, this is a great place.

Passive income includes interest, dividends, royalties and rent from real property, or the sale of an asset that has been held to provide passive income.Flipping houses within a tax-sheltered entity is not entirely tax-sheltered, however, if such activity is engaged in on a regular or repeated basis.