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Tax, SDIRAs & Cost Segregation

User Stats

25
Posts
7
Votes
Jim M.
Pro Member
  • Real Estate Investor
  • Manahawkin, NJ
7
Votes |
25
Posts

Deductions for a newbie

Jim M.
Pro Member
  • Real Estate Investor
  • Manahawkin, NJ
Posted Sep 4 2017, 10:29

So I am a brand-newbie at this, have not done a deal yet.  I realize that the very first thing I need to do is educate myself, which will probably take several months (which will put us into the next tax year) before I am ready to pull the trigger and make that first deal.  My question is, if I spend money now on educating myself (e.g., books, courses, biggerpockets pro membership, etc.) but don't actually begin investing in real estate until next year, will I still be able to deduct those expenses for this tax year?  Or do I need to have a real estate "business" set up first?

FWIW, I am a W-2 employee and also earned a small amount of 1099 income this year, by moonlighting at the same occupation as my full-time job.  My current occupation has nothing to do with real estate.

Thanks so much.  Looking forward to getting to know many of you here on biggerpockets as I begin my journey. :)

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