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Updated almost 5 years ago on . Most recent reply

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Laurie Cundiff
  • Investor
  • Estero, FL
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Tax benefits of investing in rental property in Solo 401 K

Laurie Cundiff
  • Investor
  • Estero, FL
Posted

We are buying rental properties within our Solo K. Can someone tell me what the tax benefits are to doing this? I understand that closing costs, interest, insurance etc. typically are deductible expenses in general, but I'm told, are not expenses that can be deducted within the Solo K.  I was hoping they would be at least deductible for the business itself!?  What other tax benefits are there for investing in rental properties within the plan then?

Most Popular Reply

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Carl Fischer
Pro Member
  • Rental Property Investor
  • Ambler, PA
1,382
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Carl Fischer
Pro Member
  • Rental Property Investor
  • Ambler, PA
Replied

@Laurie Cundiff

If it is a Roth 401k it provides tax free income for your life and 10 years after your death to your heirs. Tax returns may or may not be required and bookkeeping is simpler in many cases. 

  • Carl Fischer
  • [email protected]
  • 215-283-2868
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