Do i need to create a business to deduct business expenses?

[Dan Trinh]

Hi Guys,

This is a question that has always been on my mind but i can't quite seem to find the answer too.

Currently i own a few rental properties in Las Vegas. I live in California and would like to go to Las Vegas to take a look at my properties. Can I deduct this trip as a business expense if i do not technically own a business? I do not have a business license (no sole propriertorship, No LLC etc) for my rentals.

I typically deduct property insurance, property management fees etc off my individual personal income. Are there any benefits to starting a business and paying for the yearly fees to run a business?

Any help or link to the answer would be greatly appreciated!

Thank you so much guys!

Have a good one.

Dan

[Ashish Acharya]

@Dan Trinh , 

I think what you think is- having entities ( LLCs or DBA as sole pro) is a business and you need those to deduct expenses.

You dont need these entites to deduct all the expenses related to your rentals. Yes, you deduct all the expenses related to rentals on your personal return under Schedule E ( not schedule C as mentioned by @Brian M Sweeney Schedule C is for Trade or business, not rentals)

Yes, you can register DBA or create an LLC to run a rental, but you would still report that under Schedule E. You rarely get the tax advantage from LLCs for rentals. LLCs are mostly for liability protection.