@Marc FergusonI previously took out a 401(k) Loan and then ultimately took a 401K distribution to get started in real estate investing.Some cons of taking out a 401K loan are that it gets added to your taxable income and taxed at your marginal tax rate.There is a 10% penalty if you take a distribution.Why I think taking a 401K distribution is not as bad as people make it seem to be.Once the money is yours, you are not tied to the strings of a 401K - You can do whatever you want with the money and don't need to wait FOREVER until you are 59.5 years of age.You are transferring it from one retirement account to 'another retirement account'.

To an outside party, it certainly looks like a taxable gift from you to him if you give him some of the profits from a sale of a property wherein you alone were on title.

If I can, will that make the taxable income even lower?

If we're talking income taxes, the simple answer is what's your net taxable income and what's your effective rate of tax?

"How could an investor best utilize property to lower taxable income"?

Account Closed This is the story with 80% of the transactions happening in King Lincoln, Southern Orchards, and Olde Towne East to some extent...People are asleep at the wheel here...An extension of this is the fact that all these renovations were started with properties taxable values of $10-30k...and they are selling for $300k...really?...

Basit - tk u to you ... that sounds familiar - no penalty on the withdrawal... was told everywhere it has to be pulled out within ten years...i had rolled into into my own acct from hers...the company said it was a non taxable event to do that, and that i could then change allocations...so opened a new acct which is still an inherited IRA... with that same organization.

Depending on your age, 90% of your 401 at retirement could be taxable growth. 

Or they can wait a year or so and then move into the new investment property and reverse convert it from investment to primary without a taxable event.It takes a little runway. 

Hi Isaiah,Property deducted expenses from your rental property can reduce the taxable income generated by the property.