Discussion:Real Estate Pro- investigation expenses

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Discussion Forum Index --> Tax Questions --> Real Estate Pro- investigation expenses

Vaughn (talk|edits) said:

24 September 2006
A real estate pro traveled to Hawaii to investigate several properties for purchase to be her own rental properties.

No properties were purchased. Any deduction for the cost of the trips on Schedule C? How about a miscellaneous itemized deduction?

Lois (talk|edits) said:

24 September 2006
Rental Properties are reported on Sch E not C - so the expenses would not be on her Sch C. I am assuming her Sch C is her business as a Realtor? On a side note - if she is a Sch C as a realtor is she at a minimum a PLLC or probably should be a PC.

If the primary purpose of the trip was for investigation and she has proof of the extend of work performed etc. Then the expenses would be deductible. I'm thinking they would be investment expenses as a misc itemized deduction.

Death&Taxes (talk|edits) said:

24 September 2006
Forgive me for this, but I always ask the client, 'Can you say it without smiling?"

Solomon (talk|edits) said:

24 September 2006
I have asked that question on other boards and the answer always came back miscellaneous expense on A as investment expense - for what it is worth.

Actionbsns (talk|edits) said:

14 February 2007
Will that apply as well to the expenses incurred by a client researching the purchase of a business during the year, but no purchase was consummated? Or does the fact that it is a business being researched change the scenario?

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