My understanding is that this would reclassify the 10% management fee
from passive rental income to active property management income. Is
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 ...
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 ...
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).