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Updated about 10 years ago on . Most recent reply
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401K Conversion to ROTH - Can I offset the taxes from the conversion with a loss on property?
So here is my situation:
I am a new investor. I purchased an investment property that has not yet been filled but I have incurred costs along the way to get me to this point. Now I've been told that I can write off many of my expenses, but since I have not generated income yet would those be considered a loss I assume?
Some of the expenses I incurred were: Membership fees for different real estate groups and websites (BP for example), repairs on the house, utilities on the house, property management, educational expenses and a few others I can't think of at the moment.
So I guess my question is somewhat two fold: Are the above mentioned expenses able to be written off? If so and they are shown as a loss, can those loss expenses counterbalance a part of the taxes I would need to pay due to the conversion from a traditional IRA to a ROTH IRA?