Self directed IRA Condo tax question

[jw72]

Hello,
I have a 600K+ CA Condo in a self directed IRA and want to move in 8-10 years at 65. My Question is what is the best way to get the money out and pay the smallest amount of tax? The best way I can think of is take 100K out every year at 59.5, but the transaction costs add up. I could sell, and remove cash slowly for IRA account and buy a similar condo but my property tax would be a lot higher. I could move to Vegas for a few years and pull 1/2 out Dec 31 and 1/2 Jan 2 and take hit on federal tax and save CA state tax (can't take more than 2 years way from ocean). With 300K income for 2 years my medicare would cost too. Delay moving in and take withdrawal a lot slower? Any thoughts? Anyone else have SDIRA and planing on moving in? What is your plan?
Thank you

[aim-high]

Don't know the answers but I've got a big question . . . how are you legally able to live in it? I would love to know because I'd love to figure out how to make that legally work myself. But as far as I know, disqualified people (the owner) may not receive any indirect benefits.

https://www.trustetc.com/real-estate-ira/rules

[jw72]

Rental of these properties to your relatives or living in the property yourself is prohibited because this is considered a conflict of interest. When the time comes for you to retire, you may take over ownership of the property as an IRA distribution. The problem is the value has shot up now I have to pay taxes on the higher price when I take distribution.

[aim-high]

Thanks. That makes more sense.