Does Depreciation Apply to Solo 401k Owned Real Estate?

Deprecation of rental property does not apply to Solo 401k or IRA LLC owned property.  Reason being, your retirement account NOT you owns the property. Also, solo 401k and IRA funds are already tax-deferred or tax exempt.

As a result of not being able to depreciate real estate owned in your solo 401k or IRA, you will want to invest the retirement account in real estate that will appreciate in value and generate high rental income, as the loss in value of the property resulting from changes in conditions such as economic and environmental can negatively impact the solo 401k plans initial investment in the property.

Since solo 401k owned real estate may not depreciated, make sure the property the solo 401k will buy will appreciate-increase in value. Make sure to research the area to help prevent the solo 401k from purchasing real estate in an area where property values are falling because of social changes or other reasons.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571


    8:00 am - 4:00 pm PT

    Why us?