Newbie tax questions
Ok all you smart BP members, I have a couple of tax questions. I'm new to real estate investing, and haven't made my first purchase yet. I have been trying to get some things in order while looking for a property.
1) Since I have not made a purchase yet, and don't foresee making one before the end of the year, will any of my expenses (such as training workshops, travel & lodging, office supplies, etc.) be deductible on my taxes? Will the business even be considered a business until I make a purchase? I have opened a Sole Proprietor business bank account for the business.
2) When I opened the Sole Proprietor business bank account, I transferred several thousand dollars from my personal bank account into the business account to have money available if I found a good deal. Will this money be considered business income?
Thanks in advance for your help. I realize these are newbie questions, but that's exactly what I am. Thanks again.