Would you consider Legal & Accounting as an operating expense?

Question

I am thinking reconsidering this because I will need to pay taxes regardless if I own a property. If you do consider this expense, how much do you allocate per property?

Daniel Smyth · Answer

@Matthew OConnor

I am new. Pardon my comments before actually doing the deed.

I plan on EVERYTHING being a business expence!

Bigger Pockets fees, app fees, half of my meals, and all the travel fees I can deduct!

You see, I have no "fund" from which to buy these things we need. They are all an expense!

I have yet to find my tax people. They are going to have fun with me! I can read! An expense is such!

Let me know what you do!

I am driving the economy for the government! There ARE EXPENSES!

Aaron H. · Answer

Money you spend on a lawyer or accountant in the process of being a landlord and renting a property are deductible operating expenses.

For a single family house, I don't typically budget separately for those kind of expenses. For a larger multifamily, your main legal expense would be evictions. Accounting cost will depend on how much you do yourself and how complex your finances are.

Would you consider Legal & Accounting as an operating expense?

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