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mkdlew
New Member

Rental expenses not related to a specific property

I own 2 SFH rental homes and use a schedule E to fill my passive profit/loss with them. Occasionally, I have other expenses that are related to new property acquisition (in my existing market) like -- driving to tour a new property, taking an online educational class, paying for an online subscription to find new potential home investments in the area.

 

How do I classify expenses that are related to my overall real estate investing but not directly related to a specific property (like the schedule E is)?  

 

What forms and worksheets should be used?

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1 Reply
ColeenD3
Expert Alumni

Rental expenses not related to a specific property

The books and subscriptions are personal expenses. You don't have a business that buys houses, you have a passive activity.

 

Per the IRS, In most cases, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income.

 

Unfortunately, unless you are a Real Estate Professional, the cost of researching a new property is not a deductible rental expense. These expenses may be considered acquisition costs to be added to the basis of the property, should you buy one.

 

Pub 527

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