(FL) - How can you get tax benefits on an inheritance and passive income? (I believe cash rent for a farm (IL) is passive, yes?)
Also, what about rental income of an inherited home (IL) - What is this income considered??
Is passive income taxed the same way earned income is taxed?
I am 54 and do not work outside the home, recently married, will file separately for legal reasons. I do not qualify for IRA's or Roth's on my husband's income because we would have to file joint to qualify this.
My husband (54yo) is not in any financial position to save money in any retirement vehicles, therefore, our goal is to save and invest as much of the inheritance as possible to retire in 5-10yrs.
We live simple, $40,000 cash rent and $25,000 salary is a lot of money to us. We have no debt and own our home free and clear. I do have around $20,000 annual farm related expenses for property taxes, many insurances, electricity, maintenance. So in the door income is $45K, which is quite adequate.
We could live FI now, but being newly married and young (54) we aren't quite ready to retire, but we are considering part-time work that allows more free time for my husband and I to travel a little more. Thanks ahead for ways to save on taxes!!!
Submitted June 07, 2017 at 10:02AM by Jackie762 http://ift.tt/2sDtrvn
