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Updated about 10 years ago on . Most recent reply

User Stats

83
Posts
19
Votes
Greg Baker
  • Rochester, NY
19
Votes |
83
Posts

Investing with pre-tax dollars?

Greg Baker
  • Rochester, NY
Posted

Hi everyone, I've been devouring some recommended books over vacation and one book made a point that actually blew my mind.  It stated if you buy a $50,000 home with traditional W-2 income, I truly"paid" $75,000 pre-tax dollars for the property.  In other words, I had to earn $75,000 to buy a $50,000 item.  This fact finally made me realize the benefit of "pre-tax" saving/allocating and the power of passive income to use for future purchases.  

Now, I've listened to around 70 podcasts, read quite a few books and in my recollection the only way to use pre-tax dollars for real estate is through a self directed IRA which is more appropriately used for notes than a rental property.

Is there any other way to allocate W-2 income pre-tax to use for investment property purchases?  

Thanks!

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