A traditional ira is one of the most common options for real estate professionals. It allows the account holder to deduct the money contributed to the account on their tax return. Earnings can increase with deferred taxes until you withdraw them when you retire. If you're married and your spouse has a traditional job, you may be able to contribute your rental real estate income to a tax-deductible spousal IRA.
As long as your spouse's income is high enough to cover your IRA contributions and you file a joint return, both of you can make a contribution to the IRA, since the IRS considers that the income earned by either member of a married couple has been earned by both. Because they require you to contribute to income earned by working, investment income, such as those you earn from rental property, is generally not eligible to contribute to a tax-deductible IRA.