ROTH IRA eligibility

Does passive rental income (real estate is not my occupation) count towards ROTH IRA eligibility, even if the total rental expenses this year are higher than the rental income?

posted

Hi RB8747,

Unfortunately rental income doesn't count towards eligible contributions to a Roth Ira. The Irs specifically eliminates income derived from property such as rental income from the definition of taxable compensation needed to contribute to a tax favored account (Ira). Therefore, the fact that rental expenses exceed rental income wouldn't matter.

https://www.irs.gov/taxtopics/tc451

https://www.irs.gov/taxtopics/tc309