All Forum Posts by: Robert H Hilbert

Thanks Justin and John.  John did you use a separate tax advisor or did Discount Solo 401K help steer you by answering the simpler questions?  Also, did you use them for creation of Solo 401K for R/E purposes. 

I want to transfer $ from a std 401K to a Solo 401K for the purpose of investing in R/E. I want to ensure that I meet the requirement regarding active, not passive, income.  Can you please recommend a company that offers Solo 401Ks that can also help me with the tax questions.

Please don't send a lot of "it depends on" replies because my goal here is to link up with a company that can help me take steps.  Thanks in advance. 

Bob

Thank you.  Here is more detail. I am just starting out with R/E investing beyond my own home.  If the first property I buy receives the three fixes above, and I don't know if I'm buying more properties this year, will it count as a flip?  Seems to me the answer to my question is "any home that is resold in < x months, with any $ having been put in, constitutes a flip and is taxed as ordinary income". Is this correct?

I just read in Han and Macfarlane's tax book that profits from flips get taxed as ordinary gains, not capital gains. What is defined as a flip?  If we merely paint and cleanup and maybe replace carpets for less than $5K, and resell a month later  is that a flip?  What if we do the same work and rent it for a year and then sell, does it still get taxed as a flip?  (I understand that I must claim the expenses the same year as the sale.)

Thanks to all three of you.  The detail is great Michael. I haven't incurred any expenses yet so all of it will apply to '21.

I am a beginner am reading my 1st R/E book (by Brandon Turner), and building my goals and plan. Can I claim LLC/S Corp expenses, such as classes/examination to get a R/E broker license, if I incur them before I create the LLC or S Corp?