One of the most significant tax advantages offered by My Solo 401k is the current deduction available.
The Deduction rules work the same way regardless of whether My Solo 401k contribution is in cash or property. When contributing property to My Solo 401k, the following rules apply:
- If property is contributed, the amount of the contribution is the fair market value of that property for purposes of determining whether the contribution exceeds the deduction limit.
- The contribution of encumbered property is also prohibited.
