There would be no 1099 issued by either the Solo(k) custodian nor by the banking institution that holds the actual funds of the LLC's checking account.The money that left the Solo(k) to fund the investment in the LLC (which actually has the checkbook control) is not reportable as it was for an investment, not a taxable distribution to you, the account owner.Similarly, after that investment money flowed into the LLC's checking account, any checks written to pay expenses related to the LLC-owned asset is also not reportable because the money did not go to you as the Solo(k) owner, it went to pay expenses related to the asset.

@Bob LowryAs long as the funds are properly transferred to an IRS-approved 401k, it will not be a taxable distribution.

I use an S corp with a handful of properties that will always be financed commercially so that I can finance ten properties with 30-year conventional.Further, if you transfer properties out of an S Corp, it is a taxable sale.

Unfortunately the State of California would never let the taxable event go by unnoticed.

As such, a corporation whose primary income is passive is in-eligable for the small business tax rate and will pay income tax at the highest corporate rate.Trusts are another beast altogether and while they have a useful place in wealth management and distribution to family, you are not going to need one starting out.What I would advise is that you create a bullet list of your near, mid and longer term business objectives and then sit down with an account who specializes in business and real estate to create a roadmap for your business growth .... this will identify whether it makes sense to incorporate at the outset and, if not, when it would be appropriate and how things should be handled in the interim to mitigate the taxable event at the time assets are rolled-over into a corporation.

Only 50% of capital gains are taxable so $45,000 in your case.  

Which means you can build a big account with it and take larger amounts out at a time during retirement, which makes it more taxable when you final do pull out money.

Proceeds are not taxable.  

Just remember what ever you decide on, if you charge a separate fee for parking it is taxable in most communities.

., reduction of taxable income).