Switching Jobs, Landlording 101, and Investing vs Paying Off Debt
Summary
AI-generatedThis episode delves into managing a 401(k) as a self-employed individual, exploring options like solo 401(k)s for loans and investments. It also covers the tax implications and responsibilities of becoming a first-time landlord, even for rental income from family members.
Key insights
A solo 401(k) can be established if you have a business, even a sole proprietorship or LLC, allowing you to borrow from your retirement funds under specific rules.
Mistakes to avoid
Not taking depreciation on a rental property means you miss out on tax benefits and will still face depreciation recapture tax upon sale, effectively paying taxes on deductions you didn't claim.
Tools & resources
Innagoplatform
Innago offers free property management software to help streamline tasks like tenant screening, lease signing, and rent collection.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial