HNIs: RMD Tax Playbook
Tax threads say high‑net‑worth owners with ~ $12M IRAs can cut RMD tax exposure by roughly $200k–$250k at a 37.5% rate using real‑estate‑professional status, grouping elections, cost‑segregation and bonus depreciation—often funded through upgrades like pools and landscaping ( ). Meanwhile, India’s new Income Tax Act goes live in April 2026 introducing a single 'tax year', revised ITR deadlines, higher STT and stricter HRA rules — changes advisers flag as material for housing non‑profits and rental planning ( ).
U.S. tax advisers are increasingly “stacking” real‑estate‑professional (REP) status, the §1.469‑9(g) grouping election, cost‑segregation studies and the reinstated 100% bonus‑depreciation rules to generate large first‑year deductions that can turn passive rental losses into non‑passive offsets. (kbkg.com) A $12 million traditional IRA produces RMDs in the mid‑$400k–$550k range depending on owner age under the IRS Uniform Lifetime Table (e.g., age 75 factor 24.6 → RMD ≈ $487,800; age 78 factor 22.0 → RMD ≈ $545,455). (gudorffinancial.com) Cost‑segregation studies commonly reclassify building components into 5‑, 7‑ and 15‑year classes so bonus depreciation can be claimed in year one, creating deductible losses of the kind that can offset the $400k–$600k taxable RMDs HNIs face; tax‑planning vendors and accounting firms say this routinely produces six‑figure tax‑savings in the first year for large portfolios. (accountants.sva.com) Practical execution requires meeting the REP tests (more than 50% of personal services in real estate and 750+ hours materially participating), filing a binding grouping election for multiple rentals, and careful documentation; the grouping election is generally irrevocable and late‑filing relief is limited to revenue procedures and prospectively consistent returns. (adamsbrowncpa.com) India’s Income‑tax Act, 2025 takes effect April 1, 2026 and replaces the 1961 law, formally introducing a unified “tax year” framework and moving several filing and correction timelines (the revised return/correction window is now extended to March 31 under the new rules). (pib.gov.in) Budget 2026 raises Securities Transaction Tax (STT) on derivatives (futures from 0.02% to 0.05%; options to 0.15%) and tightens HRA compliance while expanding 50% HRA metro status to Bengaluru, Pune, Hyderabad and Ahmedabad; tax analysts say those changes and the clarified rules on income from house property will materially affect rental planning and housing‑related non‑profit structures. (economictimes.indiatimes.com)
