TomD8
Level 15

Deductions & credits

That "someone else" is correct.  Even though you haven't had any income yet from your real estate business, you can legitimately deduct your allowable business expenses on Schedule C.  You'll need to upgrade to the Home & Business version of TurboTax, then enter the expenses as business expenses.

Unless you're on salary, you're going to be considered a self-employed business for tax purposes - and you'll be reporting your real estate income and expenses on Schedule C, which will be part of your normal tax return.  You will still be able to itemize or take your standard deduction, which is what "someone else" was telling you. 

Schedule C expenses are deductible even if you have no income, as long as your real estate activities are a business and not a hobby.  If you're paying MLS fees and monthly dues, and you're associated with a local brokerage, you're legitimately a business. 

Something important to be aware of:  once you start making money as a realtor, you may well have to start paying quarterly estimated taxes.  That's because (again assuming you're not on salary) no taxes are going to be withheld from your pay.  

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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