Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 10 years ago,

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!

Loading replies...