Real estate investing in an IRA

• #1 reason - Tax deferred growth on income and capital gains
• No 1031 requirement at time of sale
• Real estate investment related expenses paid out of the IRA
• No annual tax reporting
• No tax ever if purchased with a ROTH IRA

Taxable investing outside of the IRA

• Tax deferred Capital gains only if a 1031 exchange otherwise a taxable event at the time of sale
• Tax on net earnings
• Annual reporting required