Ira contributions. My income is solely from rental real estate as a sole proprietor. Which IRA may I contribute to?

[jimsack]

I have existing Roth and Traditional IRAs from previous W-2 employments.  

[DoninGA · Accepted solution]

You must have taxable compensation to contribute to an IRA.  Passive income from rental real estate is not taxable compensation.  See this IRS website for IRA contributions - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

And IRS Publication 590-A for compensation - https://www.irs.gov/publications/p590a/ch01.html#en_US_2016_publink1000230355

[Critter]

And if you are actually entering the rental income on the Sch C ( it really belongs on a Sch E unless you provide services to your tenants like a hotel)  you must also have a profit to contribute to an IRA.

"""If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. """

Publication 527 - Residential Rental Property (Including Rental of ...
<a rel="nofollow" target="_blank" href="https://taxmap.ntis.gov/taxmap/pubs/p527-007.htm">https://taxmap.ntis.gov/taxmap/pubs/p527-007.htm</...>