@Anonymous_ wrote:
Start-up expenditures are specified in Section 195 of the Code as being deductible for the taxable year in which the active trade or business begins.
If I'm interpreting what your saying correctly, regardless of the business start date (6/2021) on the federal tax id/EIN request AND the first return that I'll file for 2021, I can still take the start-up expenditure deduction in 2022 as that is when the active business of rental begins. Is that correct?
@Anonymous_ wrote:Note that an "active trade or business" is required while net profit/loss from residential rental real estate is generally considered to be a passive activity.
I definitely plan this to be an active business and NOT an investment/passive activity. It will be a vacation short-term rental with numerous bookings per month, a large degree of owner involvement (scheduling, communication, coordination, advertising/marketing, repairs, etc.), and regular and continuous work to earn a profit.
