Prohibited Transactions are Always Taxable.  But Taxable Transactions Aren't Always Prohibited... Many Self-Directed IRA owners don't realize that it's possible to engage in transactions in an IRA that establish a present-day tax liability.  Those who do know that frequently confuse taxable transactions in an IRA with the more sinister risk, the prohibited transaction.  Prohibited transactions are always taxable.  But taxable transactions aren't always prohibited.  Here's the difference: This episode (and all supporting materials): https://SelfDirected.org/254