Question

I have a client who works in corporate America. He is also in the business of real estate and plans to use this platform to support his transition out of corporate life.

In 2019, he created a single-member LLC (business license, tax ID number, articles of organization, etc.). He took some expensive real estate courses in 2019 and 2020.

My question is, will it raise a red flag writing off the classes in 2019 on a Schedule C? He is not a licensed real estate professional at this time, but this is part of his transition plan in 2021 or so.

He owns some land, and I think a piece of real estate outside of his personal residence. The real estate was acquired before 2019 and is not rental real estate.

I want to take advantage of this write-off for my client, legitimately. ... Log in to view full article.