WHAT CAN I WRITE OFF???

6 Replies

Hello BP community,

Can I write signing up for BP PRO off on my taxes as a business expense? Or anything else like lawyer fees, DM marketing campaigns etc?

Thanks for the feedback!

Hi Brandon,

You can write off virtually anything you have paid for related to your real estate ventures. Make sure you signup in your city as a Sole Proprietorship this year if you haven't already. This is the cheapest way to go ~$50 or so. This will allow you to deduct BP Pro expense, lawyer fees, marketing, mileage, home office deductions, office supplies and equipment, licenses and memberships, software, and utilities related to your business. 

If you don't have this business certificate or don't apply for one, then you won't be able to deduct it. Setting up an LLC or S-Corp costs more but offers more safety when you purchase houses/apartments in the future which you will want to look into, but just use a Sole Prop for now if you don't already have one.

Eric

Originally posted by @Eric Traboulay :

Hi Brandon,

You can write off virtually anything you have paid for related to your real estate ventures. Make sure you signup in your city as a Sole Proprietorship this year if you haven't already. This is the cheapest way to go ~$50 or so. This will allow you to deduct BP Pro expense, lawyer fees, marketing, mileage, home office deductions, office supplies and equipment, licenses and memberships, software, and utilities related to your business. 

If you don't have this business certificate or don't apply for one, then you won't be able to deduct it. Setting up an LLC or S-Corp costs more but offers more safety when you purchase houses/apartments in the future which you will want to look into, but just use a Sole Prop for now if you don't already have one.

Eric

 I am pretty sure you don't "NEED" a business certificate to take these deductions.  Local governments may require them to operate a rental unit, but from a tax standpoint, there is no paperwork to file for a sole proprietorship.

Thanks guys as of right now I don’t have a business set up but I am in the process of setting up a LLC. Thanks for the feedback.

You definitely should talk to an attorney about this just to cover all of the bases.

It all depends how your CPA structures your taxes. Anything that your wondering about, I would compile all associates docs and submit. The accountant will determines how that will play out.

@Brandon Phillips
While an LLC may offer asset protection, not having one will not preclude you from deducting ordinary and necessary business expenses.

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