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Updated 10 months ago on . Most recent reply

User Stats

24
Posts
14
Votes
Brian Glasspoole
  • Rental Property Investor
  • ID WA, & CA states
14
Votes |
24
Posts

Roth conversion ladder using real estate

Brian Glasspoole
  • Rental Property Investor
  • ID WA, & CA states
Posted

There is a somewhat complex, but powerful tax strategy unique to RE investors that expands upon the Mad Fientists roth conversion ladder.
1. High Income professional over the income bracket that allows you to deduct RE depreciation from W-2/1099 non RE income.
2. Losses, including carried forward from RE (tax form 8582) can be used to significantly offset roth conversions in early retirement if you keep income under the threshold. 

It is like a turbo charger for roth conversions. 

My CPA said it is legal. 
I hope this helps someone reading this. 

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