Anyone looking to shelter the most money possible would use a solo 401k for their AirBnB income.

In 2022, each person can contribute up to 61k/year or 67,500 if over 50. You’ll want to be able to model that.

Another wrinkle to be mindful of. If the income is “joint” (presumably if the home is jointly owned, the income would be split evenly as well) then you would split it across each partner, such that the first $20,500/27,000 off the top of net income can be put into each 401k, then the 25% rule would apply for anything over that amount.

Of course, these 401k contribution limits are shared with any employer 401ks that might coexist, but the solo 401k provides the additional support of the 25% Employer Contribution up to $40,500.

This is an incredibly powerful investment tool for anyone doing self-employment / side hustle rental.

Thanks!