Deducting Travel Expenses from Taxes

3 Replies

Hello BP community!

I live in California and plan to invest out of state.  To get started, I am planning to visit 2-3 cities for a day or two to learn more about the areas and view properties.

My question is, since I'm travelling for business purposes, could I deduct my travel costs as a business expense?

If so, what do I need to set up in order to accomplish this?

Thanks.

M

Perhaps @Steven Hamilton II will respond.

If you are currently in the business, you should be able to deduct the expense. However if you do not yet have properties and are researching a new business that would generally not be deductible.

However you may be able  to amortize that travel expense as a start-up expense.

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@Michael Modesto  They are deductible if you are traveling in your geographic area where you already have a real estate (possibly it has to be a rental?) business. It is either not deductible, added to the basis or treated as startup expenses depending on what happens. Nolo's Landlord's Tax Deduction Guide has a few pages on it in Chapter 11.