investments in rental property
Hi do you know a way to shield or reduce the taxes I will have to pay 0n my rental income from two small apartment buildings i have owned for thirty years when I retire in about 9 months. Where can I redirect this 7000 positive cash in retirement so the feds don’t take there share, Maybe have the tenants write the checks out to a charity I setup ,I’m lost?
Terry Says
No, no, no — don’t start fooling around with the IRS! You’ve presumably been paying income taxes on your rental income all these years. Why worry about it now? Just be grateful that you have that income.
If you decide to sell the properties, you’d pay capital gains taxes. But consult your accountant, because you’d have to “recapture” any depreciation you took over the years. Then you’d have to figure out how to invest whatever is left after taxes. Maybe you’re better off just collecting those rents, enjoying life, and not worrying about the taxes!
