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Updated over 7 years ago on . Most recent reply
Can I write off purchases for a company that doesn't yet exist?
Hello, pretty self-explanatory question but I'll flesh it out a bit.
I've been reading the bigger-pockets tax strategies book and it got me thinking...
I currently do not have any properties or any entities. However, I do have every intention of starting this endeavor sometime in 2018. I have purchased several books (recommended from this site) and have been working through them. Can these books be written off? What about if I visit properties for research or use any of the other mentioned strategies, do I first need to buy a company / create an entity?
Thanks!
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- Rental Property Investor
- East Wenatchee, WA
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Basically expenses incurred to operate or expand an existing enterprise could be deductible. Enterprise being something that is currently active and earning income.
Education and such to learn for a future enterprise is like college and not deductible. Can you imagine if everybody could deduct college expenses?
I read a thread on here where someone wanted to deduct their $30,000 guru program. Because they didn't have an existing and active business the answer was no from the pros.
My $.02 @Kevin K.