Expenses for homes that did not close

[John McAuley]

Hey Guys,

I had several expenses this year associated with homes that we ultimately did not close on (inspections, termite inspections, etc.). Are those treated like normal business expenses against my LLC for tax purposes or how exactly will those be handled? Thanks.

John

[Mark Holencik]

Yes, they are normal business expenses. Your accountant will tell you how you should classify them. I would have entered as an expense associated with that property even though I did not buy the property. 

It is no different then when I go give a price on a job and do not get the job. It is factored in to the cost of overhead. This way I know how much I need to make every day just to keep the doors open.