Discussion:INVESTMENTS SEMINARS
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Discussion Forum Index --> Tax Questions --> INVESTMENTS SEMINARS
| 6 November 2008 | |
| Hello everyone. I have a client (owner of a few properties going forclosure)that started an LLC for a new property that is been built in the go zone area. He came to my office with more than $10,000 in seminars and books related to investments and taxes and he wants to deduct all this from this LLC. I see that some of the expenses can be deducted from schedule A under investment expenses but not from the LLC. Most of these seminars are called wealth seminars and for what I understand those are not deductible. Also the building is not ready to be rented. I thought the deductions can start when the property is ready to be rented and the LLC is treated same as Schedule E for one member LLC. This is the first time I have one member LLC in rental properties and I just need to confirm that I am in the right path. Can you please comment. He asked me to do his bookkeeping but all I see is a bunch of seminar expenses besides the purchase of the building. He is not a real estate broker. | |
| 6 November 2008 | |
| Gracie, this exact question has already been answered. You can find it by using the yellow search box to the left. | |
| 6 November 2008 | |
| Education needed to start a new career is not deductible. That holds true for the refresher courses to take the CPA exam. Courses to improve your skills in your work, ie CPE courses are deductible.
Now apply that to the courses taken by your client. In which category do they fall? | |
| 7 November 2008 | |
| Investment seminars are specifically not deductible. Not by the LLC, not on Sch A. | |
Death&Taxes (talk|edits) said: | 7 November 2008 |
| Never say never, Joan. Here is Judge Vasquez from the recent CARL H. JONES III AND RUBIELA SERRATO vs. Comm. 131 TC 3
"It is important to note that section 274(h)(7) does not preclude deductions pursuant to section 162 (trade or business expenses) for conventions, seminars, or similar meetings. "Petitioners concede they were not in the trade or business of day trading and cannot deduct the expenses relating to the course pursuant to section 162." I will let the OP now read posts on level of trade or business. Personally, anyone foolish enough to let someone else tell them how to accumulate wealth is throwing their money away, and I don't want my taxes to pay for it. This last message has been approved by Death & Taxes and appears with his permission. | |
| 7 November 2008 | |
| Not sure that 162 applies here since he owns a "few properties". However, assuming the activities rise to the level of a trade or business, then some of the seminars might be deductible on Schedule E. | |
