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Updated about 8 years ago on . Most recent reply

User Stats

68
Posts
14
Votes
Karen Young
  • Investor
  • Greenville South Carolina and Lihue, HI
14
Votes |
68
Posts

Can I deduct a RE course as a tax expense?

Karen Young
  • Investor
  • Greenville South Carolina and Lihue, HI
Posted

Prior to purchasing our first rental property my husband and I took a course to learn the ins and outs of RE.  Our CPA says we can't deduct the cost of the course since it wasn't education for our main jobs. 

This is from IRS publication 535 Business expenses:

Most Popular Reply

User Stats

5,271
Posts
2,325
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
Votes |
5,271
Posts
Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

Prior to purchasing or investing you cannot deduct it as it is for a new trade or business. Once you are already engaged in the activity you can deduct it.

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
  • Loading replies...