Author Topic: Recharacterizing some rental income as active.  (Read 640 times)

hoping2retire35

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Recharacterizing some rental income as active.
« on: October 25, 2016, 02:27:44 PM »
Just curious what others have done to recharacterize some of their income as active income?

Rental management
Handyman work
self real estate agent

Where is the line of legality?
Gray area?

The biggest reason is to continue to contribute to a roth account once fired, FYI.

salmp01

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Re: Recharacterizing some rental income as active.
« Reply #1 on: October 25, 2016, 03:36:23 PM »
I'm not an accountant but I can't see why the IRS would care if you paid yourself for property management tasks, maintenance tasks, etc.  By doing this you'll need to pay an additional 12% in self employment tax so it's a win for the IRS!