Creating an LLC for my Wholesale business: What can I write off?

[Will Stahl]

Hey Everyone,

Right now is an exciting time for me. I'm diving into the adventure of wholesaling and am beginning to explore options to create my deal funnel. Along with this comes expenses and given that this is my first LLC im not sure about what I can and can't write off. I plan on sending direct mail, online advertising, and bandit signs. Are these eligible? What else do you think I should know about writing off expenses? Any big cans or cants that I should be made aware of?

Thanks!

-Will

[Basit Siddiqi]

@Will Stahl

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Advertising cost - direct mail and online advertising sound like legitimate expenses.
Bandit sign costs might be a grey area if it is considered illegal in your area.

Track your mileage costs to and from potential wholesale properties.
You may be entitled to take a deduction if you take a distressed seller to lunch.