Portion of your income from the rental property that is generated from the leveraged portion of the property will be subject to UBIT (unrelated business income tax) at the rate of about 35%.When you use leverage to purchase investment property in a Solo 401k however, it will be exempt from UDFI.

There is a petition available for Real Estate Investors to say that Seller Financing needs to be exempt from Dodd Frank.Read the petition.http://savesellerfinancing.org/cfpb-action-letter/"We are asking the Consumer Financial Protection Bureau to remove installment sales which include a dwelling, known as seller financing, from the definition of Loan Originator in Regulation Z of TILA which was amended by the Dodd-Frank Act."

The origination might be exempt, but you dealing with a third part may not be.

Adding the depreciation would make it even better.I didn't even consider the capital gains exemption scenario.

@Brian Gibbons - Doesn't DF also have some exemptions?

I understand that is done this way because he will pay for me that amount in the future...Question:Should the homestead exemption for this year take into account to calculate the amount that I have to pay for those 3 months?

Accredited investors is no longer a totally safe haven, one must deal with "exempt" investors only to have a chance of escaping SEC scrutiny.

The opinion also stated that the finder's exemption can only apply if the activity is limited to arranging an introduction between the parties and the unlicensed person cannot be involved in any role in the negotiation of the loan, no matter how slight.

I don't think a Roth incurs UBIT.Jon, you may be right, but when I read the tax code, it uses IRA in its publications so I assume they are not exempt from UBIT.

There are a number of specific sources of income that are exemptions to UBIT.