No Deductions Allowed to Agent Investor

[Scott McCadden]

As part of my regular routine of checking the "tax news", I came across a recently released tax court case, TC Summary Opinion 2018-27.  

Bottom line, a licensed real estate agent deducted mileage for visiting houses for possible investment, never invested in any houses and the IRS audited his returns.  Despite already being a licensed real estate agent, the deductions were disallowed because the business of real estate investing never got started.

Official government source material: https://www.ustaxcourt.gov/UstcInOp/OpinionViewer....

Good write up by a tax professional: https://www.currentfederaltaxdevelopments.com/blog...