Real Estate Conference Vacations?

Question

Does anyone have any recommendations for real estate conferences that double as a vacation destination?

Don Paulsen · Answer

Donald,

Contrary to what Buddy said, being a RE Agent or Broker is not a requirement to deduct your expenses for attending a RE Conference. Talk to your accountant about the IRS guidelines, so you can structure your trip so that it will be deductible.

Good luck and have fun,

Don Paulsen CPA

Buddy Holmes · Answer

Thanks

Tim Polk · Answer

How did this turn into an IRS/Tax forum?  He asked about conferences that would be a good vacation spot.

Jocko Willink San Diego in November.  Not real estate but life lessons.

Grant Cardone looks like it's digital this year?  Soo, go anywhere you want and bring a laptop.  I'd recommend Caddy's on the beach in St Pete, FL.  Cheers ;)

Don Paulsen · Answer

@Buddy Holmes

This is from IRS Publication 527 "Residential Rental Property (Including Rental of Vacation Homes)" (I bolded the section that might apply to you. You may want to talk to your CPA about establishing your home as your principal place of business so you can deduct future travel expenses)

"Local transportation expenses: You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. However, transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business. See Pub. 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business."

Hope this helps.

Don Paulsen · Answer

@Buddy Holmes

The question Donald MacMillan asked was about deducting Real Estate Conferences, not deducting mileage for clean up and landscaping. I've never had a client that had conference travel disallowed by the IRS, since they were following the rules.

Buddy Holmes · Answer

@Don Paulsen @Basit Siddiqi,

You may be correct in reading the rules. I am an engineer and not a CPA, but...

I have recently gone through an IRS audit of 3 years of returns dealing with a handful of SFR's and one new STR.

The STR was 360 mile R/T from my home at a Beach location.  The auditor did not allow the trip miles to do clean up and finish the landscaping saying it was just my commuting mileage.  My rep fought the good fight won some lost others all the way to Tax Court.  My auditor said could not combine time spent on my multiple rental properties to make the 750 hrs criteria, rather that much time had to be on a single property.

So if you want to test the rules and think it is worth it have a good time.  This was my first IRS audit in over 50 years of returns and I want no more of them.  I can tell you conversations with the IRS is not quite as logical as I was used to in my working life!

Basit Siddiqi · Answer

@Donald MacMillanInvestors can deduct travel for education purposes.Now, the question is whether the trip's cost(flight + hotel + car + meals) are 100% deductible or partially deductible.You may need to have a conversation with your CPA where your trip is predominately business related to make the trip 100% deductible.Best of luck

Buddy Holmes · Answer

Hi @Donald MacMillan,

Your tag says you are an investor.  If you are not a RE Agent or Broker an IRS Auditor will not look kindly on your deducting travel to a "RE Conference".    They see you as an RE Investor or just plain Investor.  Would you deduct going to a Stock Market Class on how to buy stocks?

Cheers

Real Estate Conference Vacations?

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