QUESTION:
I own a house that's currently my primary residence, but it pulls in a lot of cash by renting it on the weekends. If I turn that into a full-time AirBnB/Rental and don't use it myself any longer, how would I go about moving it into a solo 401k plan without breaking any of the self-dealing rules?
ANSWER:
No, since you own the property personally you cannot place it into your Solo 401k. The transaction you described above your proposed transaction would specifically run afoul with the following Solo 401k prohibited transaction rule: Selling, exchanging, or leasing property
Selling, exchanging, or leasing property
Whether an individual owns part or all of an investment property, the Solo 401k prohibited transaction rules do not allow for the sale or exchange of personally owned (directly or indirectly) property to his or her own Solo 401k.
Click Here to read more about the IRA prohibited transaction rules.
I own a house that's currently my primary residence, but it pulls in a lot of cash by renting it on the weekends. If I turn that into a full-time AirBnB/Rental and don't use it myself any longer, how would I go about moving it into a solo 401k plan without breaking any of the self-dealing rules?
ANSWER:
No, since you own the property personally you cannot place it into your Solo 401k. The transaction you described above your proposed transaction would specifically run afoul with the following Solo 401k prohibited transaction rule: Selling, exchanging, or leasing property
Selling, exchanging, or leasing property
Whether an individual owns part or all of an investment property, the Solo 401k prohibited transaction rules do not allow for the sale or exchange of personally owned (directly or indirectly) property to his or her own Solo 401k.
Click Here to read more about the IRA prohibited transaction rules.
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