Tax Q: What about expenses incurred prior to purchasing?
I have a couple of rental properties, 4 doors. Been at it for almost 15 years (yes, its just a side-thing, for now...). Have also been doing my own taxes the entire time. Expenses incurred to maintain, fix, service the rental are very straightforward. Even depreciation with a bit of help from Turbotax!
Now looking to get more properties, and as I spend more time and - more importantly, money, in searching for the property, the question is, what of these efforts, and how, can I deduct? Do I need to list it as separate business activity -this won't look great, as it will always have a loss - the profit only comes after the purchase! It may not even happen the same year, and after it does, is it even appropriate to expense your search efforts against the income of that property?
So for example, my latest endeavor is to try to buy a condo or in Florida to rent out (my Aunt has a lead on an old lady wanting to sell). I will need to fly down there to check the place out. It may not even work out - I may not even end up making a purchase this year! Is there a viable way to expense such a trip - and any others that come about from the efforts to acquire the property?