Tax deductions before owning an investment property

[Chris Ready]

Hi all,

New Real Estate investor here in the process of starting out.

I know that once I own a property any operating expenses, travel etc. are tax deductible but does anyone have any insight into collecting receipts for business meetings and recording mileage relating to starting up investing and buying a first property?

My intention is to buy a first property this year but there's a chance it could slip into next year.  

Thanks in advance for any help. 

Chris

[Kyle J.]

The answer to these types of questions can vary so much based on the details of your individual scenario, but it sounds like you don't have a business.  Rather, you're just shopping around for your first rental property.  If that's the case, then no I don't believe you could deduct the things you're asking about (mileage, meetings, etc).  Real estate investments like this are generally considered a passive activity as opposed to a trade or business (in which case you could deduct these types of expenses).  So, essentially, you need a property to attribute these expenses to, and without one you don't have anything to deduct against.

As others have suggested, you could always consult your tax professional for more specific advise based on your individual situation.