I’m a 2nd year real estate agent, how much is a reasonable amount in business expense write offs?
mcurry81 asked:
I’ve made less this year than last in my real estate business because the market is really bad right now. I have much more in business expenses though. I don’t want to be audited, just wondering if anyone out there with experience knows what a reasonable amount in expenses for just having one sell.
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I’ve made less this year than last in my real estate business because the market is really bad right now. I have much more in business expenses though. I don’t want to be audited, just wondering if anyone out there with experience knows what a reasonable amount in expenses for just having one sell.
December 29th, 2008 at 12:54 am
your risk is that IRS will decide that your RE “business” is really a hobby and therefore that net losses aren’t deductible.
relax.
they won’t decide that until you’ve had three or more losing years in the last five.
take all the legitimate expenses you incurred, the net loss reduces your taxes due on any other income your family has.
GL
***
the question of whether you should spend the same amounts in the coming year is completely different and no tax person can advise you on that.
December 29th, 2008 at 6:19 pm
Just tell the truth. No games. Yes i am experienced. Calif Licensed Real Estate Broker for “34″ years. So the answer is a reasonable amount in expenses is “what you can prove”.