Tax Consequences Solo 401K

[Brian Dowling]

I am Passive Real Estate investor and plan on investing in an ATM Fund in the amount of $200K.  The investment will provide investors with a 24.7% annualized preferred return (paid monthly), and the potential for significant depreciation benefits (estimated 100% of invested capital to be counted as a passive loss during the first year of the investment ).  My question is am I better off leaving it in my Solo 401K, where I can draw the money out at my leisure.  Or should I withdraw the $200K from my Solo 401K and take advantage of the 100% depreciation?