Can I deduct the realtor association fees,the MLS website membership charge and the error insurance from my taxes although I don any income from realstate this year?

Forum|Forum|6 years ago
June 3, 2019
1 reply
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I have another job with w2 but want know if I can deduct the cost of my real estate side job that didn't get income as of yet although I am employed at a local broker.

Also wanted to know if I can deduct will the deluxe work for kt

TurboTax Deluxe Android

Best answer by MinhT1

Yes, if you are a real estate agent (even part-time) you can deduct these costs as business expenses even if you did not have any income in 2017.

You'll need to upgrade to TurboTax Self-Employed to report these costs.

MinhT1Answer

Yes, if you are a real estate agent (even part-time) you can deduct these costs as business expenses even if you did not have any income in 2017.

You'll need to upgrade to TurboTax Self-Employed to report these costs.

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sumodog123

Are you sure that is correct? I thought that real estate expenses can only be used against real estate earnings unless they are considered an RE professional. He stated he hasn't earned any commission yet.

Real Estate Professional Test. To qualify as a real estate professional, a taxpayer must satisfy the following tests: Perform more than 50% of services in real property trades or businesses (“50% test”), and. Perform more than 750 hours of service in real property trades or businesses (“750 hours test”)

SusanY1

Yes, this is correct. When actively employed and working as a real estate agent, one is considered a professional even if commissions haven't been earned yet. The hours/percentage of income test does not apply in the case of working as a real estate agent.

The definition listed above applies in the context of rental income from propety and its associated expenses, which is reported on Schedule C rather than Schedule E when it is received by a real estate professional as defined above.

@sumodog123

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