BACKGROUND: I need to clarify whether a Real Estate Agent can actively market rehabbed houses that were purchased by their Solo 401k.
QUESTION: Am I correct that the IRS allows them to market rehabs purchased by their solo 401k, including putting them on their agent website [stating they will not collect commission as listing or selling agent]; so long as they do not collect an agent commission?
ANSWER: As the trustee of the solo 401k, the individual is responsible for managing in looking after the assets of the solo 401k; therefore, in the case where the real estate agent is serving as the trustee of his or her solo 401k (commonly referred to as a self-managed 401k), one of the many responsibilities of the trustee is to look after the real estate owned by the solo 401k including arranging for its disposal.
Thanks for the clarification,
Joyce in Oregon
