All Forum Posts by: Linda Weygant

The rules for being able to deduct such expenses have to do with whether or not you are already in the business of real estate.  If you are already in business, then education to further increase your skills is deductible.

Establishing an LLC is NOT considered to be "in the business". You must already own (in this example) rental real estate before you are considered to be in the business of being a landlord.

So, for example, if you're an engineer and you want to become a real estate agent, the classes and study guides to pass the real estate agent exam are NOT a tax deduction.  However, after you're an agent and you are taking additional classes as part of your annual licensing renewal requirements, then those classes are deductible.

The same goes with education for any industry.  You must already be in that business before education related to that business is deductible.

This isn't a topic you want to crowd source opinions on.  This would be well worth money spent with both a qualified attorney and a qualified CPA to make sure you get this right.

Oh my god.  Please talk to a qualified CPA before you do this.  I just had shivers going up and down my spine reading this with the sheer number of pitfalls in your plan.

Unfortunately, the tax code doesn't work that way.  As Wayne says, you don't get a deduction for your remodeling costs spent prior to your rental in-service date.

Please sit down with a qualified tax pro before you start.  This isn't going to go the way you think it will.

BiggerPockets has a CPA referral page:

https://www.biggerpockets.com/...

You may want to speak with a real estate focused CPA.  Flipping is not capital gains, so your tax pro is already 0 for 1 in giving you good advice.

BiggerPockets has a CPA referral page.  You might be better off looking for a tax professional that understands your investment patterns, rather than limiting your search to a small geographic area.

https://www.biggerpockets.com/...

At this point, you should put yourself on extension and get with a qualified real estate tax professional.  There's a lot that you need to discuss with somebody that can teach you about your investments and how they work with your specific situation.

BiggerPockets has a CPA referral page here:

https://www.biggerpockets.com/...

Biggerpockets has a CPA referral page here:

https://www.biggerpockets.com/...

BiggerPockets has a CPA referral page here:

https://www.biggerpockets.com/...