QUESTION: I am buying a rent property with my Solo 401k. How should I instruct my tenants to pay rent? please make checks out to …? What if some one pays with cash or a cashiers check?
ANSWER: Because the real estate property is owned by the solo 401k, the rental checks are made payable in the name of the solo 401k and deposited in the solo 401k account. It is not recommended to accept cash because it is tough to track.
Zach in Michigan