Did you know there are several ways to take money out of your IRA tax-free? Remember, just because you CAN, doesn’t mean you SHOULD.
The first thing you should do is consult your tax/legal/financial advisor(s) and determine if taking money out of your IRA is the right step for you!
Option 5: Losses relating to the sale of rental properties.
Many people forget that the loss on a rental property usually will generate an ordinary loss and not a capital loss. A net capital loss, as described above, is usually limited to only $3,000. An ordinary loss, on the other hand, may have no limitations (depending on your tax situation).
This particular opportunity has a lot of complications, exceptions, and holes to jump through, so have your trusted advisor review your situation carefully!
Remember, these are just ideas! Everyone’s situation is different. Make sure to consult your trusted advisors to determine what is appropriate for you!
Information gathered from MD Producer article for professionals