Assume that, in a given calendar year, a loan originator organization pays an individual loan originator employee $40,000 in salary and $125,000 in commissions, and makes a contribution of $15,000 to the individual loan originator�s 401(k) plan.

Where that isn't practical, I would record the expense and note it as an "owner contribution" or in accounting terms an increase in "owner equity" or as an owner loan.

I'm working with a JV partner to build a senior living / assisted living facility in South Florida as well as working on acquiring a local strip center.Prior to becoming a full-time real estate investor, I was an investment banker on Wall Street focused on basic industries and then healthcare ($20bn of transactions across M&A, leveraged finance and IPO / equity offerings).Looking forward to learning from everyone and contributing where I can!

Chris it's amazing how much you contribute to the BP community.  

This was my first post, so thank you to all who contributed.

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company  (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016, the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

Well, according to my book, "The tenant pays up to 30% of his monthly income to the landlord, and the housing authority pays the landlord the difference between the tenant's contribution and *what it determines is the market rent each month.* " Italics added. 

Question for all the wonderful people who contribute to this forum.

I definitely see some tax savings available to you, but would need a better understanding of your business before I could really make any recommendations.Check out my profile and send me an email to discuss as I'm not on Bigger Pockets regularly these days.One thing to be aware of is that as an LLC or Sole Prop, your retirement contributions for a SEP are based on your total profits, so you can really maximize your SEP contributions with that structure.  

The simplest way I've seen is that you create an LLC, each making capital contributions, and you have sweat equity, if no cash is coming out of your pocket, as your contribution.