IRA strategy - checkbook control, flips, then 72t?

[Jim Goebel]

We had a conversation with our CPA today and in the course of that a few 'new' ideas came up.

I'm wondering for those that have utilized checkbook control for a business under a self directed IRA, then for instance done a flip, within an IRA -

The CPA walked us through tax obligations for a flip, in the 'outside IRA' world, and it isn't pretty. Seems after the gains tax and then the self employment tax we were up nearly at 45+ % !!!

I'm nearly certain people that flip properties do much better, but here's what crossed my mind:

Why not get checkbook control, flip something within the IRA, then do a 72t to start drawing income early out of the IRA which let's you not have the early withdrawal penalty? The main advantage as I see it would be then that the income is taxed at your marginal income rate which will depend on where someone is, but is much lower than that 45% etc.

Am I missing something?  I doubt we'd get into this world as at least as of now, we're mostly doing buy and holds.

On a somewhat related note, as well - I'm wondering if there's some way to do a 72-t from income (ie an existing cash flow) within a self directed IRA? Instead of withdrawing from a cash balance? Meaning, if there's an existing cash flow (say rental income) that can be counted on, can a 72t be done there?