Can you deduct the costs of real estate seminars and boot camps?

The ability to deduct these costs largely depends on the nature of your real estate activities—are they considered a business or an investment? This distinction is crucial for understanding your tax obligations.

If your real estate activities are a business, you may be able to deduct all costs related to real estate education, such as seminars or boot camps and related travel expenses.

These costs typically cannot be deducted if your real estate activities are merely an investment.

Identifying your real estate activities as either an investment or a business is fact-specific:

• Indicators of investment activities often involve less direct involvement in property management, such as collecting rent under a net lease or owning property managed by others.
• Indicators of business activities usually involve a greater level of personal involvement in property management. Examples include personally managing rental units, seeking new tenants, and handling properties through an agent.

Your specific circumstances and involvement in your real estate activities determine their classification. A hands-on relationship with your properties may lead to your activities being considered a business for tax purposes.

If you would like to discuss your real estate activities, please contact us here.