Other deductions

[Mark Forest]

Where do you all put deductions that cannot be attributed to any specific house? Things like inspections for houses you did not buy, periodicals about real estate, tax prep, education seminars and classes for real estate.

The problem is that this year I am capitalizing a lot of costs in 2012 for houses that are not rent ready. I have two houses that do qualify for expensing. I cannot see capitalizing a portion of these general business costs.

[Steven Hamilton II]

Steve Might,

Those expenses for properties that you DID NOT purchase are not a business expense. Each property is considered a separate investment which means a separate part of Schedule E. They were an investment expense deducted on Schedule A.

What I was saying is that if you had a corporation that would assist in changing where certain expenses are deducted and how.

-Steven