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Updated about 7 years ago on . Most recent reply

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Kevin K.
  • Augusta, GA
3
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Can I write off purchases for a company that doesn't yet exist?

Kevin K.
  • Augusta, GA
Posted

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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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
16,108
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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied

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.

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