Forums Solo 401k Real Estate Investments Max Solo401k Flips

  • Max Solo401k Flips

    George Blower replied 8 months, 3 weeks ago 2 Members · 2 Posts
  • 1 Reply
  • Top SubjectIRAs and 401k plans Under Attack – Act Now!,Real Estate Investments
    Top ForumsIRAs and 401k plans Under Attack – Act Now!, Real Estate Investments

    Paul Stevens
    Top SubjectIRAs and 401k plans Under Attack – Act Now!,Real Estate Investments

    October 18, 2023 at 11:09 am

    Hello! Wanted to seek clarification. I understand that you should avoid flipping more than 1 or 2 properties in a Solo401k, and also hold them and use them as an income property for at least a short time.

    Does the number of flips I do in a calendar year outside of my solo401k affect me flipping one or two properties within it? For example if I bought and sold 5 properties OUTSIDE of my solo401k …. And in that same year also did one within my solo401k? Would that be a problem?

    Also, if I consistently buy and sell one property in my solo401k every year for several years, is the consistency a potential problem?

    Thanks in advance

    Paul Stevens
  • George Blower

    Top SubjectDaily Live Webinar,Solo 401k
    Top ForumsDaily Live Webinar, Solo 401k

    George Blower

    George Blower

    Top SubjectDaily Live Webinar,Solo 401k

    October 21, 2023 at 11:58 am

    1) Yes, doing a high volume of real estate flips, such as more than 2 per year, may create an issue. Flipping homes inside a Solo 401k plan is generally considered a trade or business activity. When a tax-exempt entity, like a Solo 401k, engages in a trade or business on a regular or repeated basis, the income generated may be subject to Unrelated Business Income Tax (UBIT). It is important to note that the industry consensus is that 1-2 flips per year would not expose the income to UBIT, but a higher volume of flips increases the risk of being subject to UBIT. Can I Flip Real Estate Inside My Solo 401k? – My Solo 401k Financial

    2) Flipping real estate outside of a Solo 401k would not have any direct impact on the Solo 401k itself. The rules and regulations regarding real estate flips and tax implications would apply to the individual’s personal transactions outside of the Solo 401k. It is important to note that the Solo 401k is a separate entity and its investments and activities are governed by its own rules and regulations.

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