Will let you do the math here, but having earned income from your business will add on self employment taxes, which will be typically be a lot more money spent than you’d save by deferring your taxes. You also need to find out if you have 40 quarters of earned income so that you’re eligible for social security.
But some outside the box thinking:
Get married to someone that has earned income. You can put money in an IRA if they have earned income.
Get a part time job. Dump every penny in tax deferred accounts.
Start a business. Have your rentals pay your business for work. Pay the extra taxes so it’s considered earned income. You’ll pay into social security to make sure you have your 40 quarters, you’ll pay more in taxes, but then you can defer some taxes with retirement accounts. IRA’s and individual 401(k) will be your friend.
But. You do the math for yourself. See if it makes sense. Passive income is already pretty good for taxes anyway.
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You make a few good points! One of which I wasn't even aware of. That "non earned" income does not count towards social security. I wouldn't have to pay FICA and would have 7.65% less tax burden, correct? Yes I have reached the 40 quarters and am eligible for social security. Looking at ssa.gov, I'm 36 years old now. If I had $0 future annual salary, at 62 years old, my SS would be $16,548. If I had an income of $40,000 a year until 62 years old. My SS would be $21,240. A difference of $4,692 a year. Not much really... I suppose at 70 it could be a more significant difference.
Marriage along with a SOLID prenup are a future possibility.
I like all you input and really appreciate you taking the time to inform me, and everyone else on here. I guess it comes down to what kind of lifestyle I want/need and income needed for it. At the end of the day I'll keep my lifestyle simple and try not to touch any money that is invested unless absolutely needed to.