All Forum Posts by: Jason Wilde

Thank you for all of the responses! Very pleased to see that expenses factor into my AGI. @Paul Allen, this makes perfect sense. (Thanks for working past my omissions). Yes, let's assume $3k mortgage interest is on rental property, and contribution is to traditional IRA.

@Ashish Acharya: I'm not clear on your response. Is there a rule against traditional IRA contribution if rentals are one's only source of income? (In reality, I would contribute much more than $1k to traditional IRA.)

If the answer is yes, are there any strategies to cause rental property income not appear as rental income property? Like, reporting it as active income instead of passive? Or...? Alternatively, are there other type of retirement savings that would decrease AGI? Perhaps HSA (assuming high-deductible plan, etc)? Others?

Thanks!

Hello. Long-time lurker here. I'm hoping that someone here can help me.

I'm trying to estimate my AGI (assuming rental income only), but am struggling to find straight answers. 

I have my lease agreements set up where I cover monthly utilities, lawn care, plumbing repairs, etc, (in addition to the standard things like property taxes, insurance, mortgage). In turn, I charge a higher rent to cover those extra expenses.

Use purely hypothetical numbers, suppose I collect $50k from tenants each year. From that, I pay out $10k for expenses mentioned above. I report $5k in depreciation. I pay $3k in mortgage interest. I contribute $1k to my IRA.

What is my AGI? (Specifically, do utilities and repairs factor into the AGI, or are they itemized/deducted afterward?)

FWIW, these rental properties are set up as single-member LLCs ("disregarded entity"), as passive income.

Thanks so much!!