Self-directed 401k Question Answered – How Can I Use Real Estate held in my Solo 401k?
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Solo 401k FAQ: Taxable Amount on In-Kind Taxable Distribution of Real Estate
I previously set up a Solo 401k to invest in a rental real estate property. I am now over 60 years of age and wish to take the property as an in-kind distribution. I know that I will have to pay taxes. Will I pay taxes on the original amount that I invested in the property?
No – you will owe taxes on the fair market value of the property at the time of the distribution.