Tax deductibility for real estate personal coaching?

Question

In 2022, I started receiving personal coaching for apartment syndication. I am an LP in several deals with the intent to become GP as well; I am also not a real estate professional. al. As such, is it possible deduct the cost of this coaching and, if so, where might this be reflected on my tax return since it would not be attached to a particular business?

Donna Stern · Answer

Thank you for the question LOL

Bob Gruenig · Answer

Thank you for your response!

Donna Stern · Answer

If it can apply to what you are doing and help in the business, I would take a deduction due

to the direct relationship. I have a property management company that sends their employees to an education conference each year. They are educated on good property management skills, and the cost is deducted from the income of the property they service on schedule E of the client.

Bob Gruenig · Answer

Thank you for your response!

For some reason, I neglected to mention that I own several single family rental properties, i.e., I have a real estate business but not as a GP as yet. The personal coaching, although with a primary focus on apartment syndication, has a lot of applicability to my rental properties.

Natalie Kolodij · Answer

No it's not.

You don't have a real estate business to deduct it against.

You have passive investments that happen to be real estate.

It was not ordinary nor necessary for you to take that course to invest passively.

Once you are a syndicate and need to learn those things for you to operate an investing partnership then you can potentially carry this over as a start up cost or something like that.

Donna Stern · Answer

Yes...this is deductible... Depending on tax forms you file you can put it on schedule C or E. But would need more information.

Tax deductibility for real estate personal coaching?

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