Even though the profit from a dealer disposition is recognized in full and taxable in full in the year of sale, even if an installment sale is used, I don't know if recognizing the gain taxed as self-employment income can still be contributed to your 401k if you have not actually received it.Maybe your 401k custodian should answer the question about the source of income that can be contributed.

As long as the loss on sale of investment exceeds the cancellation of debt/depreciation recapture, then the net result on your taxes will actually reduce your adjusted gross income.General rule of thumb is that you usually will not have a taxable event after all is said and done if your loss on the investment exceeds your cancellation of debt and depreciation recapture.

In 2010 it was valued at $72,300/ taxable value $28,920.

I used a 401K loan to purchase my first investment property.A loan is not a taxable event.

If you have the ability to do so, I would aggressively dollar cost average (DCA) into the stock market using a Taxable Margin Account over the next few months as we remain in a bear market.

If they don't follow the law and report taxable income, then they are unlikely to follow your rules.When I see someone that young earning that much money as self-employed, it's a huge red flag that something isn't right.

Here’s what to know.State Equalized Value versus Taxable ValueBack in 1994 Michigan passed the Headlee Amendment:(http://www.legislature.mi.gov/(S(k5m2va1uyfgwtbyjf4nqb1bx))/mileg.aspx?

2) would this create a taxable event for the qualified person 3) does all liability of loan remain with the qualified person thru the term of the loan 4) how would the LLC track the loan, depreciation, mortg etc 4) why would the qualified person do this?

Dave is correct in that a failed exchange can defer some or all of your taxable gain into the following year IF you do not have the right to access your 1031 Exchange funds until the following year.  

Your account will take that less any deductions and that will be your taxable income.