Can I write off real estate books as a business expense?

Question

Hello Bigger pockets,

I am a new long distance investor. I want to purchase David Greene's book "Long Distance Real Estate Investing". How would I write that off? Would I simply tell my accountant to expense it on one of my properties next year on the Schedule E when he does my 2018 taxes?

Thanks in advance

Michael Plaks · Answer

Yes, @Eddie Knoell, you can write it off.

@Jim T. added some excellent practical pointers. Your accountant should allocate all your general business expenses, including the book, between all your properties and not attach it to just one.

Jim T. · Answer

@Eddie Knoell

I am not suggesting you forego previous advice in this thread but I will add my 2₵

Presumably your book will pertain to all of your properties. You can allocate expenses to multiple properties by allocating a portion of the expense to each property. The IRS doesn't seem to care which method you choose but it must be reasonable and consistent.

For the book, it seems easy enough to split the cost evenly to each property. Others may advise to apportion it based on the income they provide.

In practice, I think a lot of people for an incidental expense just throw it all into one property. This is not what the IRS advises, as far as I know so I would not recommend this.

Logan Allec · Answer

@Eddie Knoell It sounds like you are already in the business of renting real property, so I would say yes, this is a valid business expense, but please consult with your actual accountant about your particular situation.

I assume you give him or her some record at the end of the year of your real estate income and expenses.  Just indicate that you purchased the book on what date at what price.

Eddie Knoell · Answer

Thanks Jim and Michael for the advice

Eddie Knoell · Answer

Ok thanks Logan and Bettina

Can I write off real estate books as a business expense?

Most Popular Reply