Deducting Travel While Searching for Properties

1 Reply

Hello,

I recently listed my first Airbnb through a house-hack. As of today, we have 0 reviews, 9 days on the platform, have not received our first guests, and have $2,500 in bookings! That is a great feeling. Three solid months working away after the 9-5 in order to furnish and prepare the property.

Now, we want to find a property in a different state or country that we can travel to, and rent on Airbnb when we are not present.

What exactly do we need to do in order to claim our travel as a business trip? Do I need to book meetings with cleaners, property management companies, and realtors? Do we need a paper trail of the business we were conducting? 

This is totally new to me, and I am an open book.

Thanks, Nick

Originally posted by @Nicholas Aja :

Hello,

I recently listed my first Airbnb through a house-hack. As of today, we have 0 reviews, 9 days on the platform, have not received our first guests, and have $2,500 in bookings! That is a great feeling. Three solid months working away after the 9-5 in order to furnish and prepare the property.

Now, we want to find a property in a different state or country that we can travel to, and rent on Airbnb when we are not present.

What exactly do we need to do in order to claim our travel as a business trip? Do I need to book meetings with cleaners, property management companies, and realtors? Do we need a paper trail of the business we were conducting? 

This is totally new to me, and I am an open book.

Thanks, Nick

The cost associated for the investigation of the market is not deductible or capitalizable. 

Once you have identified a property, you can add the cost to the basis of the property. Yes, you need to meet certain requirements to be able to prove that your travel is business related.

How to write off vacation

Sandwitch fun activities with business Activities

Eg- find RE conference,

Can deduct:  100% of airfare, hotel, and rental car, and 50% of the meal.

The primary purpose of the trip has to be a business. Primary means 50% of the time is spent on Business activities.

Specific travel days are Business days and are deductible no matter what time you arrive. Meals on the business days are deductable.

Weekend sandwitch Strategy. Google it. 

Make sure to predetermine business activities, meetings or event setup.

If you work from hotel during vacation- you can deduct internet, faxes, or business book to read on flight.