Can my 401K or LLC purchase property?

The short answer is yes. However, we rarely recommend this way of purchasing property, and most clients end up choosing to hold the title in their name.

The most important reason is that there is no homestead exemption from capital gains for a foreign entity. So when it comes time to sell, your 401k or LLC will be taxed at the maximum capital gains rate and you will pay up to 35% on the gain or up to 25% on the whole transaction.  

Additionally, the paperwork necessary to purchase as a foreign entity is somewhat excessive and requires all documentation of the 401K or LLC to be notarized and apostilled.