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My understanding is that this would reclassify the 10% management fee from passive rental income to active property management income. Is this accurate? If so, once it's active income I should be able to use it for solo 401k contributions. I've been hesitant to answer because I don't know a great deal about Solo 401k requirements and I haven't ...


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I would only trust a tax accountant's answer on that one. It seems like it could go either way and may even change from year to year. LLCs organized as a sole proprietorship would be tricky in this case. If, however, your LLC was organized as a S-Corp this would be an unnecessary step. You would simply hire yourself and pay yourself occasionally. Part ...


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If you contribute the complete amount to your 401k, you don't own taxes on it. As a result, you can claim back the taxes you already paid, in your annual tax-filing, and yes, you can put the complete amount, including the temporarily 'missing' taxes, in the 401k (assuming you have enough cash on hand).


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