All Forum Posts by: Kathryn Knoblauch

I had a house rented in 2020 and 2021 to a tenant who quit paying due to job loss as a result of Covid. Because I was not receiving rent, I did not deduct depreciation.  She applied for rent relief and I was reimbursed by the government for most of the rental income I missed. My understanding is that I will be receiving a 1099 for the funds for this year, 2022. (the year I received the reimbursement).

My question involves how to treat the 1099 income for tax purposes.  Should I file an amended return for 2020  and deduct depreciation and declare the appropriate portions of the relief funds to that year?  (I have not yet filed for 2021) Do I owe the tax all at once for this year 2022? If I cannot apply the reimbursement to 2020 and 2021 can I still go back and file an amended return for the depreciation?  The tenant moved out on Jan 3rd of this year and I have not rented it  out this year due to extended improvements I've been making. Can I deduct depreciation for this year even though its not rented out since I am receiving a 1099 for past rental income? 

Any advice appreciated. 

Hello Bigger Pockets!

my question involves how required distributions are handled with a self-directed 401k. Let's say I own a multi-unit property in my SD 401k and I reach age 72. Let's say there is a lot of equity in the property. How are the required minimum distributions determined? Can anyone point me to any reading on the subject? 

Hello Community, 

I have a Self Directed 401K and want to purchase a property consisting of two houses on one lot. The houses need some work but there is upside as the rents are currently below market and I've checked county requirements and the property appears to be a good candidate to subdivide. 

The seller wants all cash.  I have enough to put down to satisfy a non-recourse lender, however I am finding that they tend to be particular about age and condition, and the seller won't consider an offer that is financed with anything other than hard or private money. 

I have found a loan guy with a private lender that doesn't care about age and condition as long as I put down 35% but the loans are recourse. The loan guy said all loans in California are recourse. (property is in the San Francisco Bay area). He suggested this problem would be solved if I formed an LLC owned by the SD401K and purchased with the LLC.

So my question is: Would a purchase using an LLC owned by the SD401K and using funds from the SD 401K not require a non-recourse loan? Any feedback is appreciated. Thanks.

Hello Bigger Pockets Members,

I am considering making an offer on a property using my SD 401K Trust that has existing financing. The financing is a loan carried by the previous owners, who may consider allowing a new buyer to assume the loan. Since my 401K requires that any debt be non recourse, how does one make sure this is the case with the private loan currently in place? Does certain verbiage have to be added to the loan?  Would I need to have new paperwork drawn up to comply with SD 401K rules regarding non recourse debt? Any advice appreciated. This is in California, San Francisco Bay Area

Hello All,

I am considering a purchasing a property using my SD 401K and would like to use my daughter, who just passed her real estate salesperson's license to represent my 401K so she can earn a commission. She is a disqualified person, however does she come under the following statutory exemption?

Below is a list of some of the statutory exemptions found in Internal Revenue Code Section 4975(d) that apply to Solo 401ks: