Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.
Self-directed 401k – Can I claim deductions for my Solo 401k real estate investment expenses?
QUESTION:
So under an IRA since it doesn’t pay taxes, I lose real estate deductions for repairs property taxes and other losses. I assume that I would lose that type of real estate advantage with the Solo 401k. Is this true?
RESPONSE:
Great question – one of the top reasons that clients open solo 401k plans with us is the ability to invest in real estate or other alternative investments.
Yes – it is correct. Solo 401k investments are tax-deferred which means that any gains are tax-deferred. Likewise, any deductions that would typically apply to a real estate investment, such deductions may not be claimed by the Solo 401k or the Solo 401k owner/participant.
