Start-up costs are also deductible but are amortized over 15 years with a limit of 5k.Start-up costs have strict rules and your case might not be the same as this one.Case Summary:Timeline line of eventsStarted investigating property: FebPut first contract (canceled): MayBought first property: December 30thWhether a taxpayer is engaged in a trade or business is determined using a facts and circumstances test under which courts have focused on the following three factors that indicate the existence of a trade or business:Whether the taxpayer undertook the activity intending to earn a profit;Whether the taxpayer is regularly and actively involved in the activity; andWhether the taxpayer's activity has actually commenced.On the basis investor testimony, we may assume that he undertook this activity to make a profit and that he regularly and actively engaged in it.

Lastly, if you want to grow your investor network here on BP, set up keyword alerts so that you are notified anytime someone posts about one of your service areas i.e.

Hey I know this is a pretty specialized and local topic so hopefully you all have some keyword alerts haha.

Hello everyone,I find myself in a challenging financial situation and would greatly appreciate any guidance you can offer.I have a pending income tax payment of approximately $200K for the year 2023, due by September 10.

It is filled with resources and a plethora of knowledgeThanks for joining.I wish you all the best in your real estate journey.Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/a...http://www.biggerpockets.com/real-estate-investing

Since you're a cash basis taxpayer, I think the rule is that you can deduct the full amount.

No W-2 limits.There is an excess business loss limitation, but that's $578,000 for married filing joint taxpayers.

Hello everyone,I find myself in a challenging financial situation and would greatly appreciate any guidance you can offer.I have a pending income tax payment of approximately $200K for the year 2023, due by September 10. 

.🔹 **Better Customer Service**: New email support and help desks for quicker, more efficient assistance.These upgrades mean faster processing and improved support for taxpayers.

Agreed with @Ashish Acharya point above.One thing to add, bonus depreciation is available for used property placed in service after 9/27/17, however it is does not apply to the portion where the taxpayer previously had a depreciable interest.