USTaxAid Services

We’re up to Deduction #15 of the 1000 Possible Business Deductions.

If you are a real estate investor, then you’re undoubtedly aware of this expense – advertising.  Yes, it is a deduction.  Of course, if it creates a real estate passive loss, then you’re subject to all of the real estate passive loss limitations.

Less than $100K income per year and you spend 100+ hours per year with the property, you can take a deduction for $25K.  More than $150K income per year and there is no deduction, unless you’re a qualified Real Estate Professional.

But there is one little twist to this deduction.  If you buy property, you’re not necessarily a real estate investor yet.  In fact, if you start remodeling it, you’re a real estate developer and that means you can’t take ANY expense deductions until it’s put in service.

When is it put in service?  As soon as you prove that you’re involved actively in renting the place.  And how do you do that?  Advertise.

Advertising your vacant property is not only a tax deduction, it’s also a way to start deducting your real estate expenses.

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