Can I Write Off Conferences/RE Education if I Don't Have an LLC/formal business?

[Jillyan MacMorris]

I feel a little silly asking this question, but I am a real estate investor with one rental property so far. I attend conferences and invest in education to further my business, but I don't have an LLC or formal business entity. Can I still write off conferences and classes?

[Michael Plaks]

@Jillyan MacMorris

The short answer - yes. There is no requirement to have a formal business or an LLC to claim deductions.

The long answer - maybe, within reason. How many conferences and education one needs in order to maintain one rental property? Is it one single-family house or one 50-unit apartment complex? How much income does it generate compared to the education expense? Did this education result in an actual expansion of your business? And so on.

PS. If you listen to Uncle G who wants you to spend thousands on his "conferences" and "write it off" against one rental unit - no, it does not quite work like this.

[John Malone]

@Jillyan MacMorris Id agree with Michael. Cardone may say that $18k course should be expensed but if you have 1 asset, Id be aware of whether the education is necessary to maintain it!

[Jillyan MacMorris]

Thank you @John Malone and @Michael Plaks! I have a small portfolio so far, but the conferences and courses are directly tied to expanding my business! I'm in business development in my day job, so I have used those events as incredible networking opportunities! And the courses are helping a lot to expand my network and help me get into more of the nitty gritty so I can scale up. I understand your logic, and that answers my question!

[Bruce Woodruff]

If you have even one property, that makes you a business (you should have at least a Fictitious Bus License and a business name, and a business checking account?).

As they^^ said, you can certainly write of a 'reasonable amount' of training/education, including the cost of getting and staying there. Just don't overdo it....