Rental Property Investor · Allentown, PA · Member since 2016 · 279 posts · 105 votes
Recently purchased a residential property through my solo 401k and wondering if tax benefits are greater by flipping it (after holding it for a year) or renting it for a year or 2 and then selling it. Ultimate goal is to get a commercial 12 unit in 5 years (or sooner). Thanks in advance for any advice.
Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
4y
It is a 401k. There aren't any tax implications, right? It is like investing in a SDIRA. You don't pay taxes on the profits until withdrawn unless it is a Roth.
You are, in essence, investing in a tax shelter within a tax shelter.