I would like to understand the ins and outs of taxation based on my particular plan. 

@Sandy UhlmannYes, the IRA can purchase a home, have it repaired, and resell the home at a profit.Do check with your IRA provider (and tax advisor) next week and ensure that you get a good explanation of the rules and exposure to UBTI taxation that such an activity can create.You or a disqualified party to the IRA may not do any work on the property.Flipping is a dealer activity viewed as a trade or business.  

I'm not an accountant but I've studied partnership taxation.  

It will also be subject to taxation on the financed part of the transaction. 

A local CPA I know is extensively experienced with income property underwriting and taxation issues.

Depending on the state you have a variety of different laws that govern the purchase/sale of mortgage notes, as well as the foreclosure laws and timelines required if you are unsuccessful at working out a deal with the current homeowner.The taxation is highly dependent upon the structure of your deal.

Aside from establishing whether a specific property is well priced, the currency, taxation, legal framework and property management areas will be the most important ones to research.

Much of it is universal, but some is U.S.A. specific - things are somewhat different in areas of finance, regulation and taxation.   

This is really just another form of taxation but what can I do legally to avoid having to participate in this ordnance?

LLCs are pass through entities and S corporations have no corporate double taxation, unlike C corps.