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Level 2

Question

Deduct Real estate agent/broker initial licensing and education related as startup costs?

Forum|Forum|2 years ago
June 12, 2024
1 reply
25 views

Just bring this up again as this seems to be different schools of thought

Can you deduct Real estate agent/broker initial licensing and education related as startup costs for a business?

You can't deduct them as educational expenses as per https://www.irs.gov/taxtopics/tc513#:~:text=To%20be%20deductible%2C%20your%20expenses%20must%20be%20for,to%20keep%20your%20present%20salary%2C%20status%20or%20job.

However they might be deductible as startup costs as per

https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes

previous discussions

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-i-deduct-real-estate-school-costs-and-all-other-real-estate-expenses-such-as-mileage-fees-for/00/485314

https://ttlc.intuit.com/community/business-taxes/discussion/startup-costs-realtor/00/1669480

other blogs:

https://www.thebalancemoney.com/how-to-deduct-startup-costs-on-business-taxes-397608

https://www.nolo.com/legal-encyclopedia/can-you-deduct-the-costs-the-real-estate-license-exam.html#:~:text=This%20means%20you%20cannot%20deduct,state's%20real%20estate%20license%20exam.

Love to hear to discussion from the community.

Level 15

Education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your present trade or business.

Level 2

Right, but perhaps as start up costs?

What about licensing costs?

Level 15

A start-up cost is recoverable if it meets both of the following requirements:

It's a cost a business could deduct if they paid or incurred it to operate an existing active trade or business, in the same field as the one the business entered into.
It's a cost a business pays or incurs before the day their active trade or business begins.
The license fees would seem reasonable as a start up cost since that is a cost you would have as a business owner. But would you have taken the education courses if you were already in business?