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Tax shelter rental property profit

Can the profits from my rental property be factored in to my other self employed profits to determine how much I can contribute to my SEP IRA?

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Tax shelter rental property profit


@gregorybret wrote:

Can the profits from my rental property be factored in to my other self employed profits to determine how much I can contribute to my SEP IRA?


Probably not because income (profit) from rental activities is considered passive income, not earned income (e.g., earnings from self-employment).

 

See https://www.irs.gov/publications/p560#en_US_2018_publink10008809

 

Absent unusual circumstance, such as being a real estate dealer or providing substantial services to your tenants (i.e., where your income would be reported on Schedule C), you cannot use rental profit for your purposes.

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Highlighted
Level 15

Tax shelter rental property profit


@gregorybret wrote:

Can the profits from my rental property be factored in to my other self employed profits to determine how much I can contribute to my SEP IRA?


Probably not because income (profit) from rental activities is considered passive income, not earned income (e.g., earnings from self-employment).

 

See https://www.irs.gov/publications/p560#en_US_2018_publink10008809

 

Absent unusual circumstance, such as being a real estate dealer or providing substantial services to your tenants (i.e., where your income would be reported on Schedule C), you cannot use rental profit for your purposes.

View solution in original post

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