QUESTION: Since a solo 401k is a retirement trust, does it pay state property taxes on its real estate holdings?
ANSWER: Yes property taxes apply to real estate investments held in a solo 401k Trust. While a solo 41k is a retirement trust, funds from the solo 401k trust must be used to pay property taxes on any of its real estate property holdings because the tax is due at the property level. In other words, the tax is being levied on the real-estate property, which is an asset of the solo 401k, not the solo 401k trust itself.
Thank you, Melissa G. in Houston Texas