Does a solo 401k pay property taxes

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

Additional Resources

 Paying Expenses
 Investing solo 401k in real estate

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?