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Updated over 10 years ago on . Most recent reply presented by

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323
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Mike Cowper
  • Wholesaler
  • Farmington, MI
34
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323
Posts

401K Conversion to ROTH - Can I offset the taxes from the conversion with a loss on property?

Mike Cowper
  • Wholesaler
  • Farmington, MI
Posted

So here is my situation:

I am a new investor. I purchased an investment property that has not yet been filled but I have incurred costs along the way to get me to this point. Now I've been told that I can write off many of my expenses, but since I have not generated income yet would those be considered a loss I assume? 

Some of the expenses I incurred were: Membership fees for different real estate groups and websites (BP for example), repairs on the house, utilities on the house, property management, educational expenses and a few others I can't think of at the moment. 

So I guess my question is somewhat two fold: Are the above mentioned expenses able to be written off? If so and they are shown as a loss, can those loss expenses counterbalance a part of the taxes I would need to pay due to the conversion from a traditional IRA to a ROTH IRA?

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