Investor · Minneapolis, MN · Member since 2013 · 5 posts · 0 votes
Hi,
I am looking for a bit of advice on travel expenses, I am looking to travel to another city to look at rental property. I am currently owning all my rental property in my name (not LLC), and I am looking to acquire more property out f area, I am wondering if there is any way to write this off against rental income?
An investor that travels to a region for the purpose of acquiring a rental property will be allowed to capitalize this cost as part of the investment, but this travel would not be a current year expense. If you are investigating a specific property to buy, and the deal doesn't work, you can deduct your personal expenses on Schedule A of your Form 1040 as "miscellaneous expenses."
If you are searching for a property but have no specific property in mind, and you decide not to buy, you cannot deduct these expenses; they are not related to any specific property.
An investor that travels to a region for the purpose of acquiring a rental property will be allowed to capitalize this cost as part of the investment, but this travel would not be a current year expense. If you are investigating a specific property to buy, and the deal doesn't work, you can deduct your personal expenses on Schedule A of your Form 1040 as "miscellaneous expenses."
If you are searching for a property but have no specific property in mind, and you decide not to buy, you cannot deduct these expenses; they are not related to any specific property.
My question for you is do you have enough property that it justifies investing in creating an entity.
What would be a good idea is if you spend a lot of time doing that is to invest in a corporation or LLC in which it's principal business is buying, renting and selling property. You could definitely deduct those expenses.