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Does Partnership LLC rental income qualify for IRA deduction?

Forum|Forum|7 years ago
June 5, 2019
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Is the following IRA contribution permitted as tax deductible?Income source is rental income that was derived from a K-1 multi-partner General Partnership LLC . The multi-partner LLC is not a professional real estate business. This is the only rental property within the LLC. Can someone define if this income is earned income and can qualify for an IRA tax deduction or is the General partnership ( more than 1 LLC partner) LLC rental income considered passive income , thus will not qualify as being deposited in a traditional IRA ? I believe that there might be an exception rule when it comes to partnership LLC rental income that declares it to be passive income; not qualify for IRA. Any source material for answer?

TurboTax Self Employed Online

Best answer by SweetieJean

Compensation for this purpose does not include any of the following items. Earnings and profits from property, such as rental income, interest income, and dividend income.

https://www.irs.gov/pub/irs-pdf/p590a.pdf at page 6.

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SweetieJeanAnswer

Employee

Compensation for this purpose does not include any of the following items. Earnings and profits from property, such as rental income, interest income, and dividend income.

https://www.irs.gov/pub/irs-pdf/p590a.pdf at page 6.