Would reporting him to IRS and SEC make matters better or worse?

A Roth conversion inside the Solo 401(k) also works — you’ll pay regular income tax on the conversion, but future gains grow tax-free, and the IRS doesn’t apply UBIT to Solo 401(k) accounts.

The IRS only allows hours that are directly tied to real estate activities—like developing, managing, acquiring, leasing, or operating rental properties—to count toward Real Estate Professional Status (REPS).

Not sure how the IRS treats primwry homes owned by multiple people who a rent all treating it as their primary.

You’re already close to the required hours, but remember the IRS looks at whether your real estate hours are more than half of your total working time.

You should have:1) Involved an attorney when seller disclosed IRS liens.2) Required seller to supply copies of their IRS communications as a condition to extend contract.3) Required seller to reimburse you for your inspection costs to extend contract4) Required seller to reimburse you for your appraisal expence to get a copy of it.5) Never tried to rent out the property given the IRS lien and NO ONE ELSE but seller knowing what's going on with the IRS release!

For Real Estate Professional Status the IRS requires a contemporaneous detailed log showing date hours property and activity performed.

The IRS generally makes it hard to show that rental activity counts as active involvement, since they see most of it as “not intensive.”

My accountant (CPA) said the IRS is cracking down on people taking trips and writing off some of the expenses.

@Nikelyia WatersaHappy to hop on a call to chat about all the various loan option out there.