If however you engage in an active business with your 401k (flipping properties is an active business) - the income from that activity would be subject to Unrelated Business Income Tax (UBIT) which tops at about 40%.

Be sure to have a clear understanding of the tax consequences before engaging in this activity with your 401k. 

You will receive an Addict award along with a habit; as well as learning and retaining useful real estate information without struggling.We are considered to be the average of the 5 people we spend the most time with so connect with REIA meetings, accountability partners, and mastermind groups to engage with individuals interested in real estate investing.At the bottom of this page is a list with help in it.

I am sure you will find something to take away from the discussion chain.https://www.biggerpockets.com/forums/49/topics/178...Also, now that you have taken your initial step, below are some quick links to get engaged. http://www.biggerpockets.com/starthere http://www.biggerpockets.com/ubg http://www.biggerpockets.com/meet Setting up Keyword Alerts How to Use @Mentions on BiggerPockets 25 Tips for Real Estate Success However, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

Now, you simply have to work on the other elements to progress your REI pursuit.Below, are some quick links to get engaged. http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meet Setting up Keyword Alerts How to Use @Mentions on BiggerPockets However, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

He does not have any income apart from the rent from this property and Social Security.  

The IRS defines just two types of passive activity: trade or business activities in which you do not materially participate during the year; andrental activities, even if you materially participate in them, unless you are a real estate professional.It would be highly unusual for a person to meet the first definition: Own an SMLLC engaged in trade or business yet not materially participate in those activities.The second type of passive activity defined by the IRS, however, is often relevant.

Now, you simply have to work on the other elements to progress your REI pursuit.Ok, you have taken your initial step and below are some quick links to get engaged. http://www.biggerpockets.com/starthere http://www.biggerpockets.com/ubg http://www.biggerpockets.com/meet Setting up Keyword Alerts How to Use @Mentions on BiggerPockets 25 Tips for Real Estate Success However, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

Hello everyone, hope your having a great day; anyways I'm new to this app/social networking.

We won't think or look at you like you are confused.We are considered to be the average of the 5 people we spend the most time with so connect with REIA meetings, accountability partners, and mastermind groups to engage with individuals interested in real estate investing.