Rental Income for Solo Roth 401K Contribution?
Hello!
I am in the process of qualifying rental income I received as eligible for contribution to a Solo Roth 401K
I manage rental of 3 apartment units I own. I have no other activity that I dedicate for making income.
Activities are significant. One unit is rented as a short-term rental in which I conduct the prep work. I manage reservation requests, rental payment, compilation of accounts, regular tax submissions, etc. I also manage all repair maintenance and routine property maintenance.
I have a registered LLC and EIN and have established a Solo Roth 401K.
I Understand that by default rental income is considered passive. However, I also know that should I materially participate in the rental as business activity it can be classified differently. Considering the level of interaction in the rental operations, it appears the activity would qualify me as self employed, but am hoping to confirm/verify.
* Is there a test/standard to reference in determining if the activity I conduct for the rental operations would result in the rental earnings be considered income from self employment?
* If so, would earnings be eligible for contribution to the Solo Roth 401K?
* How would I enter the earnings in the tax report programs as that which would be qualified for contribution to the Solo Roth 401K?