Structuring Real Estate Option Contracts within a SDIRA/CESA

[Sandy Uhlmann]

My son has a CESA with a small (under $3000) amount of money in it that I converted into a self directed account for him.  Since the amount is so small, I am struggling to find investments for him.  It is not checkbook controlled so that even limits options further.

I am considering helping him do some real estate option deals where he would use a small amount of money ($25-$50) to get an option on some vacant land.  Any proceeds he makes once the option is exercised would go back into his CESA account.  My question is, what is the implications of these quick flips within his SDIRA/CESA? Does it become a taxable event?  UBIT?  Is there any way to avoid the "quick flip" status?  Would selling to an end buyer on payments/land contract/contract for deed avoid this?

Thanks for the input!