Using your Self-Directed 401K to buy or expand your business.
Sometimes the Government is on your side. However, finding the tax breaks (also known as loopholes for the rich) is not easy.
Like a tax haven trust that you can control, the Solo 401K can invest in your corporation, real estate (including debt-financed), gold, stocks, bonds and on and on. Like an offshore trust, the Solo 401K pays no income tax until it makes a payment to you.
And, as you will discover below, it does not file a return for the first five years.
But, unlike the tax haven trust, a Roth Solo 401K’s income is never taxed. Never means “never.” Not to you, not to your children, not to your grandchildren and so on until the end of time.
You can learn more with this video below or contact me, Brian Dooley, CPA, MBT at 949-939-3414 for a private consultation with our Solo 401K Retirement Plan Team.
When the Solo 401K invests in your corporation, you will have a double deduction. First, you deduct the money funding your Solo 401K.
Second, the investment in your corporation by your Solo 401K is not taxable to the corporation. When the corporation used that money to pay expensed, the corporation is allowed a tax deduction. So, yes, a deduction to fund the 401K Retirement Plan. And again, some money is deducted by your corporation when it pays expenses. The 20 minute video below provides more information.
But first let me tell you why your Solo 401K may not file a tax return for at least five years. The tax law states that until your Solo 401K is worth more than $250,000 you do not file a return. For most of you this will be after five years of contributions.
The 20 minute video below presents two little known legitimate tax loopholes for the small business. You will learn two too good to be true tax strategy that your CPA will tell you is impossible. But when your CPA watches this, he will know how you can save taxes.