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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1608
Experience:  Certified Public Accountant
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Can you open a sep ira to reduce taxes on a term capital

Customer Question

can you open a sep ira to reduce taxes on a long term capital gain from a rental property
Submitted: 1 month ago.
Category: Tax
Expert:  Mark Taylor replied 1 month ago.

Hi, my name is Mark. I will be happy to help you with your questions. A SEP IRA can only be used if there is earned income. You would not be able to use the long-term capital gain from a rental property in the calculation of the amount that you could contribute to a SEP IRA.

Customer: replied 1 month ago.
I have been self employed for more than 10 years, my business for this year will show a minor lose, the rental property I actively managed for 20 years, the gain will be 120,000 after applying purchase and depreciation, can I deposit the full 25% to a sep ira to defer the taxes?
Customer: replied 1 month ago.
Is there a tax deferred account that could be used
Expert:  Mark Taylor replied 1 month ago.

Unfortunately you would not be able to use the $120,000 for the SEP IRA calculation.

Expert:  Mark Taylor replied 1 month ago.

You could contribute to a IRA.

Expert:  Mark Taylor replied 1 month ago.

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