Real Estate to fund SEP IRA?

[Tim Jernberg]

Curious if I could purchase a real estate property with an LLC and use the revenue to fund a SEP IRA? Would it have to be the profit only or could I use all of the gross revenue? Any hurdles I should think of? TIA!

[Ashish Acharya]

Quote from @Tim Jernberg:

After a little research I realize I can't use passive income to fund a SEP IRA or solo 401k.

I wonder if this would work as an active property manager of the real estate (ie short term rental manager)?  Would you have to pay a salary or have a separate company for the management aspect?

Yes, that is possible but not when you start. As you grow, you need to talk to your tax advisor. 

Your tax benefit from SEP needs to be analyzed vs the cost of changing non-SE income to SE income.