Able to write off trip/travel for real estate research?

Question

I am wondering if I look at, investigate, research real estate while traveling am I able to write off the trip?

I am interested in Belize and want travel there to investigate investing opportunities.

Chris Soignier · Answer

I read something recently (on BP IIRC) from a CPA that said you need to subsequently invest in that market to get any tax benefit from the trip.    Why did I remember that?    Because it deflated my hope of writing off an 11 day trip to San Diego, Prescott, and Durango last year.

William Hamburg · Answer

@Scott Long yes you can write off nearly everything. The rule is that you must spend at least majority of the time working on your investments to be able to legally write them off. I am not a CPA but I do know that that is valid and legal. I recommend you ask your CPA or tax advisor to make sure that YOUR trip would be eligible. I travel to Belize every year for business and everything is a tax deduction for me. Furthermore, I strongly recommend you read Tax Free Weath as part of the Rich Dad series.

David Hedges · Answer

@Scott Long I had something similar to this last year to my cpa. though mine had to do with a house we have in china, and if I would be able to write off travel between here and there if we were going to inspect the property or take care of business related to it that might require use there (china it seems a lot of things require you to physically show up). He seemed pretty confident that as long as everything was well documented that we should be ok. I think there are some limitations on gaps between business related activities though too. I'd suggest talking over just what your plan or goals are with a cpa though.

Joe Splitrock · Answer

@Scott Long you can probably write off the expense, but you need to document carefully what investment activities took place while you where there. Keep good records of substantial time spent and make sure expenses are reasonable for business. You cannot just go there for a week, look at two houses and expect to expense the trip. Also, do you own and operate other rental properties? If you do not have a rental property business, then there is no deduction. Even if totally legit, this could raise a red flag with the IRS. I am not a CPA, but you should consult one.

Able to write off trip/travel for real estate research?

Most Popular Reply