Travel expenses tax deductible for property purchase?


G

George C

Question about tax deduction on home/condo purchase.
Traveled to Hawaii in for 2 weeks end of June for purpose of
purchasing a condo. (to be used as a rental property) Found
one, made the offer and was accepted, closed on August 29,
now I own it.

Now, was this initial trip to look for and make the purchase
a tax deductible item? I have read an IRS reg. and
understand that future trips to the property are deductible
when the trips are made for maintenance and "checking" up on
the property. But, was this first trip, in any way, any
part, deductible?

Thanks
 
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D

Drewremedy

Now, was this initial trip to look for and make the purchase
a tax deductible item? I have read an IRS reg. and
understand that future trips to the property are deductible
when the trips are made for maintenance and "checking" up on
the property. But, was this first trip, in any way, any
part, deductible?
My guess is if your trip was strictly business then its
deductible. However if it was mixed, say 30% business and
70% pleasure you would be much smarter to only try for the
30%!! As an aside, I don't recall if your trip BEFORE you
are in the business of rental is deductible or added to
basis--ask your tax pro. I'm already in the business with
lots of units so the question doesn't come up in that
context.

I suspect your first trip was NOT 100% business? So use some
common sense.

Likewise for future trips you cannot deduct 100% of a trip
just to drive by your unit and spend 2 weeks at the beach.
The folks at the IRS are not dumb if it comes up on audit!
So don't invite an audit!!
 
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D

D. Stussy

George said:
Question about tax deduction on home/condo purchase.
Traveled to Hawaii in for 2 weeks end of June for purpose of
purchasing a condo. (to be used as a rental property) Found
one, made the offer and was accepted, closed on August 29,
now I own it.

Now, was this initial trip to look for and make the purchase
a tax deductible item? I have read an IRS reg. and
understand that future trips to the property are deductible
when the trips are made for maintenance and "checking" up on
the property. But, was this first trip, in any way, any
part, deductible?
No. Add it to basis.
 

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