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Updated over 5 years ago,
Are SOLO401Ks & SDIRAs Invested in Syndications Taxed the Same?
Hello All,
I am looking ahead in my investing career and thinking about the day I might no longer want to do buy-n-hold rentals myself and instead invest in something more passive like a syndication.
I currently own rentals in 'cash', in SDIRA and SOLO401K and am going to continue buying for probably the next 5-10 years at least.
I realize that within the SDIRA and SOLO401K profits are taxed differently when leveraged, with essentially no taxes due within the SOLO401K. Does this also hold true when investing in a typically structured syndication which is almost all cases that I am aware of are using leverage?
If there is a difference, what might that look like on say an investment of 100K that turns into 200K in 5 years?
Thanks, Dan Dietz
I am looking ahead in my investing career and thinking about the day I might no longer want to do buy-n-hold rentals myself and instead invest in something more passive like a syndication.
I currently own rentals in 'cash', in SDIRA and SOLO401K and am going to continue buying for probably the next 5-10 years at least.
I realize that within the SDIRA and SOLO401K profits are taxed differently when leveraged, with essentially no taxes due within the SOLO401K. Does this also hold true when investing in a typically structured syndication which is almost all cases that I am aware of are using leverage?
If there is a difference, what might that look like on say an investment of 100K that turns into 200K in 5 years?
Thanks, Dan Dietz