Books, Entertainment, Travel - Tax Deductible

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Books, Entertainment, Travel - Tax Deductible

Mark S.
Investor · Pelham, NH · Member since 2015 · 22 posts · 6 votes

Hi,

Tax question. I currently own 19 units in 7 different properties. All of the properties are held in my name personally, not in an LLC or partnership. I am a heavily leveraged individual, which is way I haven't yet put the properties in LLCs. My question is, are the books and memberships bought from sites like BiggerPockets considered tax deductible if I'm using to help educate myself? Where I don't have a company name, would this have any negative tax implications or tax advantages I'm missing? I have a FT job, so I'm not technically considered a real estate professional. Thank you in advance.

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Cody Backus
Attorney/Investor in Lehi, UT · Member since 2016 · 70 posts · 65 votes
10y

You really should consult with a good CPA. Especially in your position and you should also have a great relationship with a good real estate & business planning attorney. You are getting to the point when these things matter enough to have a good team to advise you. Unless you get a CPA or local attorney from BP to answer your question, you won't get the answer you really need. You will get what you pay for and that is scary when you have the assets you do. I can promise the value you will get far outweighs the cost of professionals who can help you accomplish your goals. 

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  • Ruth Bayang
    Investor · Kent, WA · Member since 2015 · 624 posts · 274 votes
    10y

    I would put everything in an LLC or trust. For asset protection purposes.
    And for tax advantages. Doesn't matter if you have a FT job that's not real-estate related.
    I'm not a CPA so I can't fully convey all the tax advantages, but you should definitely consult one.

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  • Cody Backus
    Attorney/Investor in Lehi, UT · Member since 2016 · 70 posts · 65 votes
    10y

    You really should consult with a good CPA. Especially in your position and you should also have a great relationship with a good real estate & business planning attorney. You are getting to the point when these things matter enough to have a good team to advise you. Unless you get a CPA or local attorney from BP to answer your question, you won't get the answer you really need. You will get what you pay for and that is scary when you have the assets you do. I can promise the value you will get far outweighs the cost of professionals who can help you accomplish your goals. 

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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    10y
    Mark Sutton BP membership would be tax deductible. Regarding your entity structure, I agree with the above posters that it's best to seek consultation.
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  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    Generally, yes - these types of expenses will usually be deductible.  

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  • Natalie KolodijBusiness Member
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    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    BP membership- I'd toss under dues

    Any books- education expense 

    Any thing that directly relates (don't get crazy, I had a guy try to deduct jamba juice because he could think more clearly with healthy foods...um no. No sir)  you can deduct as expenses on your schedule E. Just split the expenses between your various properties that are all related. 

    So if you have 3 properties just divid and list 1/3 of your "education" expense under each. 

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  • Daniel DietzPro Member
    Rental Property Investor · Reedsburg, WI · Member since 2011 · 1k+ posts · 857 votes
    9y

    What about going to a conference of trade show that directly relates to your business as a buy and hold landlord? I am thinking if BP had another conference say and both my partner and I who are both actively involved in the business flew there, paid for conference, hotel, food, bought some learning materials, and ate some meals? 

    Thanks, Dan Dietz

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