On the other hand, we would start to lose our $500,000 exemption (we are currently at about $422,000 in profit using the redfin estimate).

@Jason MoranOne of the benefits of the Solo 401k over the IRA is the exemption from unrelated debt financed income when using the Solo 401k to purchase real estate with leverage.

In Texas if you partner with a housing authority you can get a full tax exemption.

Yes, if you are moving for work that far it is one of the exemptions.

I think you're probably correct, James, that lawyers are exempt here from this law.

In Nevada it was an exempt transaction and not subject to tax. 8)

I live in NY which has a $50k homestead exemption.

I agree an active business inside of the 401k would incur UBIT.Since I deal mostly with RE investors I like the no solo 401k UBIT exemption for debt financed income.Also, the borrowing privilege has helped several people to fund their personal real estate investing.Hmm...I used the wrong term in my post?!

In addition, my understanding is that putting your personal residence in a LLC will cause you to forfeit the $250K ($500K if married) capital gains tax exemption on the sale of your house!!!

Here in Nevada it is considered an exempt transaction if the owner of the property is also the owner of the LLC that it is transferred into.