Writing of expenses related to Real Estate Solo 401K

[David B.]

Hi everyone.

I am wrapping up a trip looking for a house to buy with a Solo 401K, to rent out. It will probably take me another two trips to finally get set up with one I like, as well as lining up the property manager, etc. I travel cheap, but each trip will still cost me $500-800. I understand the basics of prohibited transactions, but it still seems as though these travel expenses should somehow be able to be written off, or somehow paid for through the Solo 401K (when I finally set it up).

I am currently self-employed in an unrelated business.

It there any way to do this?

Thanks!

David

[Steven Hamilton II]

Originally posted by @David B.:

Hi everyone.

I am wrapping up a trip looking for a house to buy with a Solo 401K, to rent out. It will probably take me another two trips to finally get set up with one I like, as well as lining up the property manager, etc. I travel cheap, but each trip will still cost me $500-800. I understand the basics of prohibited transactions, but it still seems as though these travel expenses should somehow be able to be written off, or somehow paid for through the Solo 401K (when I finally set it up).

I am currently self-employed in an unrelated business.

It there any way to do this?

Thanks!

David

You must be careful to not be using it for personal expenses or things that can be questioned. If you travel to a closing you can deduct that; however, if you stay three extra nights, not going to happen. You ould be able to write anything you pay personally off on Schedule A subject to a 2% AGI limitation(Basically the first two percent of your income is on you).