Thank you Sir,
You are correct that the question is referring to real estate, and I'm now a real estate agent. You are correct again that I've started as an unincorporated entity filing on a Schedule C.
You mentioned "under these circumstances the best answer is the date you incurred your first expense or if you were lucky generated your first dollar of income."
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? I understand that the fee for the education wouldn't count as the first cost. How about the fee to take the test? Or maybe the fee you pay to sign up for a brokerage? Or would it be the license fee?
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 and then TT wouldn't allow me to continue. So I was confused as to what my official start date was.
Then, can you only deduct the start up costs or the "first costs" in the year they happened? That's what I'm thinking.
Thank you so much. The Ask t he Expert event is over, so if this doesn't receive an answer I understand. This event has been very helpful. Thank you.
