Real Estate Agent Tax Question

sbrodkey · ‎July 11, 2020

I passed my real estate exam in 2019 and received my license in 2020. I was preparing to start my business in 2019 after I passed my exam. Can I take business deductions in 2019 or should I save them for 2020? The business expenses are primarily equipment.

Thanks

DavidS127 · ‎July 11, 2020

Report your business expenses in the year you actually start the business.

If you didn't start the business until 2020, the equipment you purchased "went into service" in 2020, valued at the lower of cost or fair market value. Non-equipment expenses incurred in 2019 for a business started in 2020 can be deducted as start-up costs.

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View solution in original post

DavidS127 · ‎July 11, 2020

Report your business expenses in the year you actually start the business.

If you didn't start the business until 2020, the equipment you purchased "went into service" in 2020, valued at the lower of cost or fair market value. Non-equipment expenses incurred in 2019 for a business started in 2020 can be deducted as start-up costs.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Real Estate Agent Tax Question