topic Real Estate in Get your taxes done using TurboTax

Real Estate

LWEME — Tue, 10 Mar 2026 06:47:37 GMT

When you do tax forms for Real Estate it asks you to list all your startup costs. Can you list start up costs such as class fees from a prior year? Or, can you only list costs that you incurred the same year that you started. For example, if you pay for the school but do not take your test till the year later can you still count that as startup cost for your first year?

Re: Real Estate

leeloo — Wed, 16 Nov 2022 22:52:39 GMT

No, education for a real estate license is not deductible. Education for any new job is never deductible. Onced you have your license, any continuing education could be deductible but only in the year you paid it.

Re: Real Estate

LWEME — Thu, 17 Nov 2022 01:45:36 GMT

Thank you so much.

So, after you take the test and pass, is it then you start the business as an agent, or would it be after you join a brokerage, or would it be when you start paying fees that your official start date would be or what might it be? There seems to be confusion among real-estate people as to when you start too.

Turbotax had asked for a start date. I entered what I though it would be, then Turbotax (TT) asked me what my start up costs were, and when I enter some costs, it replied that the date entered was after my start date. So I was confused as to what my official start date was.

Re: Real Estate

leeloo — Thu, 17 Nov 2022 14:43:19 GMT

Start-up costs are incurred before the business opens. Your job expenses are incurred after you are employed. Please see this excerpt from Tax Topic 513:

To be deductible, your expenses must be for education that (1) maintains or improves skills needed in your present work or (2) your employer or the law requires to keep your present salary, status or job. However, even if the education meets either of these tests, the 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.

Education expenses incurred during temporary absence from your work may also be deductible, but the education must be to maintain or improve skills needed in your present work. After your temporary absence, you must return to the same general type of work. Usually, absence from work for one year or less is considered temporary.

Expenses that you can deduct include:

Tuition, books, supplies, lab fees, and similar items
Certain transportation and travel costs
Other educational expenses, such as the cost of research and typing

To determine if your work-related expenses are deductible, see Are My Work-Related Education Expenses Deductible?

Start-up expenses do not include education that trains you for a new line of work.

https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-[product key removed]al-taxes