I am over 71 years old. I want to have a small guest house business.
If I take a $50,000 loan from my Roth IRA, this will increase my total income to $100,748. My total estimated cash expense will be $26,960. How do I calculate my estimated taxes payable? The depreciation rate is $17,550.
Also, if I were to take a $100,000 loan from my Roth IRA, will that make any difference? I am trying to make a quick decison, so if anyone can give me a sugestion as to take more or less out of the Roth IRA, that would be helpful. My understanding is that I should minus my Roth IRA funds from my total income, then calculate the taxes, but I'm not sure if that's right.
Have never done this before, so if someone can please give me some guidance about how to calculate it, I would greatly appreciate it.