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Updated over 4 years ago on . Most recent reply

User Stats

159
Posts
161
Votes
Effram Barrett
  • Real Estate Agent
  • Houston, TX
161
Votes |
159
Posts

What will my tax bill look like for a flip if I used 401k loan

Effram Barrett
  • Real Estate Agent
  • Houston, TX
Posted

I recently updated a home I had by using a loan on my 401K. The home has sold and I have the funds to pay back my 401K loan; let's say for example that I was paid a $50K check at closing from the title company as my net. My 401K loan was for $25K. What I'm trying to figure out is when tax time comes next yr, will I be responsible for the full $50K check, as income,  that I received or just the net of paying back my loan? 

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