All Forum Posts by: Ed Ricketts

1. So (remembering this is a solo 401K) owning 83%, how are you suggesting I report to IRS? Just sold. Does the LLC take the hit?

2. I think that a K-1 is not reportable to IRS, am I wrong?

Thaks!

Thanks guys. Great comments. I am in the process of selling the home.Not sure what I'll do with the proceeds.

But John, I had thought if I were to finance the home, I could only go non-recourse. Have I misunderstood?

I did understand that. However, the twist I was/am not sure of is when the property title is held by an LLC, yet the Solo 401K is (in this case) an LLC member and 93% owner of the property.

Thank you, Dmitriy.I understand you are not a tax expert, but I assume you have either experienced or observed the 1099-s to the LLC, but no taxes due from the Solo 401K, right?

Thanks again,

Ed

Dmitriy, I have a solo 401k that is the owner of 93% of a property, the other owner 7%. Both of us are members of the LLC that owns the property. If we go to sell the property, will a 1099-s be generated by escrow for the IRS in the name of the LLC? Are there tax consequences if this occurs?

Thank you!

Thanks for the suggestions, William. I guess this is uncharted territory, so I will investigate lenders and see if there is any way to do this.

Thanks for the suggestions, William. I guess this is uncharted territory, so I will investigate lenders and see if there is any way to do this.

Brian, D's post was not clear that he believed the partnership was OK but that his post was only directed at a possible buy-out of my wife's interest. My question is then, with whom can I get a non recourse loan on the property to use the money for other investments? It has been my understanding that no lender will do this unless all of the property is owned by the solo.

Thanks!

John, it is my understanding that if the property is not owned 100% by the solo, it is next to impossible to find a lender willing to make a non recourse loan. Do you know of a lender that would?

Thanks!

Here is what happened. 5 years ago, we wanted to buy an investment property with our (then) checkbook self-directed IRA. The good folks who established the IRA in Chicago said Mary could partner in the purchase, as we lacked $12K in the IRA to make the purchase. So the home went into the LLC as 93% IRA and 7% Mary. Then, 3 years ago we created a solo 401(k) trust and rolled over the IRA into the solo. Mary and I are both trustees and beneficiaries of the solo. This was all done under the direction of an attorney-run outfit out of Florida. There was never a question that we were doing this properly.