All Forum Posts by: Don Ireland

I have an owner occupied duplex (side-by-side type). It will be used as a rental in a few years. Each unit has carpet throughout the main floor living space as well as one room in a portion of the basement that was converted to a bedroom. The stairway also has matching carpet.

I am considering replacing the carpet with LVP. But if I do, I'd like for the stairs to match. I don't want to use wood and try to stain them to match for the same reasons I don't want to use hardwood throughout - - potential damage from tenants.

I have two concerns with this idea. I'm hoping to get your thoughts.

1) I've heard that LVP on stairs can be problematic as it can be slippery.

2) Will the LVP make it seem colder in the house. I am bare footed most of the time even in the winter months.

TIA!

@Dmitriy Fomichenko that's what I was afraid of.

So it seems like I'd need to run a SEPARATE ad campaign under the 401k (technically I would have the 401k own an LLC which would run the campaign). Correct. Any other solutions?

@Dmitriy Fomichenko I KNEW that. I'm trying to confirm or deny that the above would create a prohibited transaction.

If it does how do RE investors (people who invest in RE outside of their 401k) also buy inside the 401k?

@David M. Thanks for clarifying that for me. As to the pass thru issue, I know S Corp is pass through. I guess I should have said sole prop.

@Tina Chau this would be better served in a NEW thread VS being a reply to a thread on a different topic.

@Jessica Parker you don't have to make that determination up front. Leave it as pass through until you've started earning enough to justify it.

Go on YouTube and do a search for Kohler S-Corp. Mark Kohler does LOTS of videos and talks about this kind of stuff.

@David M. But there is no need to put BOTH of them on payroll which should cut the SE Tax in half. Correct?

If I have a LLC I'm using for flips & wholesaling, I need to advertise to find my deals. The business has sponsored my Solo 401k.

I want to buy rentals in the Solo 401k but I'm concerned that the IRS might see the leads generated by my ads as assets. Is buying a property in the 401k an issue knowing that the lead came from an ad?

What can be done to avoid any such issues?

@Chris K. I don't know what area you're looking for info on but I used to live in Bucks County and spent a lot of time researching this in Bucks Co.

It was (at the time) found on the Bucks Co prothontary's website. I moved to Missouri in 2010 and haven't look at the process in PA since then. Good luck.

Oh ok.  I thought it COULD invest in a business and that my only issue was the prohibuted person rule.