Originally Posted by alex192
Hello. I paid for some Real Estate Investor training earlier this year, in preparation for doing some investing. I am just now creating an LLC, to start investing. Can I take the training as a deduction against the LLC when doing my taxes for this year? I have not made any money yet in investing, so I would be reporting a loss in the LLC for the first year.
In general, LLCs qualify for credits and tax deductions that unincorporated businesses cannot take advantage of. A tax write-off, or deduction, reduces the overall income subject to tax.
But for you, you do no t have any tax benefit as you said since you did not have any income to be taxable on your return;however, you as a member of the LLC, can claim start-up deductions for qualifying expenses incurred during the first year of operation. Costs that are not deducted during the first year can be amortized over a 180-month period. According to the IRS, to qualify as a business start-up cost, the expense must be paid or incurred before the day the business began. Deductible start-up costs include market analyses, business advertising and salaries for new employees who are in training. The company can also write off fees paid for consultants and other professional services.but in your case since you spent the money in Real Estate Investor training, I do not think you can claim the expense on your return as Start-up Costs