Flipping and saving on taxes with a Solo 401k

[Marshall Secord]

Hi BP, I've been flipping houses in Philly for nearly two years and I am coming up on my first year that I need to pay taxes on my gains. I recently met with my CPA to go through some of the best strategies to minimize taxes. I will of course be taking advantage of every write off I possibly can, but I am also interested in deferral strategies. I think a 1031 Exchange is out the window for this year, but I am very interested in what I've been reading about a solo 401k and my ability to make a tax deferred contribution to this type of retirement account that allows me to invest in real estate. Can anybody tell me if they think this is a good idea? I'm hoping that I can take 20k of my 2022 profits and contribute it to a solo401k in order to avoid about 5k in taxes this year. I just want to make sure it wont be a pain to access that money for my next deal. I would need to combine that 20k with funds from a different account and I would need a lender to be ok lending to me knowing that a portion of my down payment / closing costs are coming from this unique retirement account. Can anyone shed some light on this?