Tax write-offs early on, and before a first property
Hi all,
I'm taking action to flip my first property this year. And, I also intend to wholesale - both as a means of building up capital which will then be used towards buy and hold properties. With that I have already paid for courses such as a BP Bootcamp, mastermind groups and conferences, and plan to buy tools to support the business (computer, a monthly app for CRM/skip tracing and Google Voice number). I do not currently have a business set up. Yet, I am fully aware of tax benefits related to operating as a business. Is it worthwhile to go ahead and set up an LLC or business to capture these smaller costs I have already incurred and will incur this year (will be $3k or so? I fully get the tax benefits of larger-scale costs involved and their value and simply don't want to overlook the current, smaller costs if there is a reasonable benefit to tracking them.
Cheers,
Grant
Most Popular Reply
of course consult a qualified professional..
This is usually the first/early misconception: LLC's do NOT provide any tax/write-off benefits except when doing business with a non-spousal partner.
So, if you are claiming you have some business venture(s) going, you'd most likely claim the deductions on SchC of your tax return. You don't need a LLC to make the claim. It automatically a sole proprietorship.
Be happy to chat if you'd like. Take care.