vnasks
New Member

I got real estate license last year. I did not make any money from it. But I had various expenses for it. Should I fill a 1099-Misc for this? Do I have to upgrade?

I'm not sure what form needs to be filed for expenses on a newly obtained real estate license. This expenses relate to open houses (supplies), traveling to show properties, website hosting, fees charged by broker, exam fees, license fees, subscription to county listing services, etc.  But, I did not have any income whatsoever. Is it a 1099-Misc.? If so, do I need to upgrade to Turbotax Deluxe?

PatriciaV
Employee Tax Expert

Get your taxes done using TurboTax

Yes, your new business is reported on Schedule C, available in TurboTax Self-Employed Online.

Even though you had no income, you can report most of your expenses, like advertising, supplies, vehicle expenses (mileage), subscriptions, etc.

Costs to enter a new profession such as classes to take the Realtor's exam are not deductible.  Once you are qualified, however, annual licensing fees are deductible.

If you did not pay any vendor more than $600 total during the year, you are not required to file Form 1099-MISC to report those payments. Once you begin receiving income, you may receive 1099's from other businesses.

When you set up your business in TurboTax, you will need the Business Code for Offices of Real Estate Agents & Brokers, which is 531210.

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