Solo 401k investments into a syndicate

[DongHui Patel]

I am a w2 earner with a schedule C doing real estate activities.

I am thinking of opening up a solo 401k for a investment into a syndicate (with a k-1). 

I would roll over some of my old 401k to the solo401k to start the funding.

I just dont know how the k-1 negative ordinary income would flow into the Schedule C and how the cap gains at the end would flow? 

[Michael Le]

I'm not a CPA and you should talk to yours... but the answer is it shouldn't flow into it at all. The Solo 401k is a separate entity from you and there should not be an intermingling of funds. While you are the trustee, everything you do should be an arms length transaction that should be benefiting solely the trust and not benefit you.