Rental improvements with retirement account funds

Forum|Forum|1 year ago
May 5, 2024
2 replies
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What is the tax liability if you are over 65

VolvoGirl

Employee

Age doesn't affect it. What are you asking about? Can you elaborate? You are over 59 1/2 so there is no 10% Early Withdrawal Penalty on retirement distributions. Your tax liability is based on your total income. Are you asking about the Standard Deduction? You do get an increase for 65 and older.

For 2023 the standard deduction amounts are:
Single 13,850 + 1,850 or 65 and over or blind
HOH 20,800 + 1,850 for 65 and over or blind
Joint 27,700+ 1,500 for each 65 and over or blind
Married filing Separate 13,850 + 1,500 for 65 and over or blind

fowlerpharm Author

Are you able to take money from your IRA retirement & investment it in real estate with out claiming it as income & having to pay taxes on it? Like one investment into another investment with no taxes (like buying & selling stock)

Mike9241

no. if you take money from an IRA to personally buy real estate or stocks its taxable unless part is return of nondeductible contributions made to a traditional IRA or is a "qualified" Roth IRA distributions. Special rules determine whether a Roth distribution is taxable or not

for more info on Roth IRAs see

https://www.thebalancemoney.com/distributions-from-individual-retirement-accounts-3193077#:~:text=When%20you%20take%20money%20out%20of,depending%20on%20the%20type%20of%20IRA.&text=When%20you%20take%20money,the%20type%20of%20IRA.&text=take%20money%20out%20of,depending%20on%20the%20type

see this about IRAs

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals

DoninGA

Employee

If you made withdrawal from a tax deferred retirement account, the taxable amount shown on the Form 1099-R is box 2a is entered on your federal tax return as ordinary income, regardless of how the funds were used after the withdrawal.