Can I rent Real Estate held in my Solo 401k?

QUESTION: If I invest my solo 401k in real estate and retain the property until retirement, and the property is appraised, would we pay Ordinary Income or Capital Gains taxes on the profit? 

ANSWER: Because assets in a retirement account such as solo 401k plans grow tax deferred, once distributions commence, whether made in cash or in-kind (in this case having the solo 401k owned real estate distributed in-kind to you as the trustee/participant), the amount distributed is taxed at ordinary income tax levels. Property owned personally outside of tax-sheltered accounts such as a Solo 401k is taxed at capital gain rates.

However, Roth Solo 401k funds or real estate owned by the Roth Solo 401k  that is distributed is not subject to either ordinary income tax or capital gains tax provided the solo 401k participant is age 59 ½ and has had the Roth Solo 401k for at least 5 years.   

QUESTION:  If the solo 401k owned property were a Vacation Rental, could I rent the property paying full retail price, or is that also not allowed?

ANSWER: Whether you pay full or partial retail price for renting the vacation rental, the Solo 401k prohibited transaction rules do not permit the Solo 401k owner to rent real estate including a vacation rental owned by his or her solo 401k plan. Visit solo 401k disqualified persons to learn about all the persons considered disqualified with respect to a self-directed Solo 401k.

Thanks again...AK