Vacationing as a Real Estate Investor


Hi everyone, this week I am posting from Rosemary Beach, FL. This is relevant because as a Real Estate investor, although I do not own any property in the area, I can write a small portion of the expenses on this trip. Real Estate investors should always be looking for deals. While Rosemary Beach, FL is not on my radar for investment property, if the right deal came along, it would be something I would consider. Real Estate investors train themselves to always be on the lookout for deals whether it is in their backyard or their favorite vacation spot. No matter where I go, I spend some time learning about the market, view a couple of deals and contact a real estate agent. While I was in Knoxville, TN a few years back, this strategy was implemented and while I was not looking for property, I found a off market deal and bought it. When you are legitimately looking for a deal, viewing listings and/or talking to other Real Estate professionals while you are in a market other then your home, you have now incurred a business expense, thus can write of that portion of your trip.

Before you implement this and take a deduction, consult with your CPA. I have spoken with my CPA who gave me instructions on how to document this and report it.  It goes to show you, Real Estate investing has more ways to capture a return on your money then the Cash on Cash return. Of course that is the most important aspect of the investment but Real Estate investors need to consider the other ways RE captures returns; the tax break is huge, especially if you can take deprecation. Also, when selecting a CPA, Real Estate investors are best served by using CPAs’ with Real Estate investing experience. After all, would you a company hire a family law attorney for a merger or acquisition.

BTW–give me a pass with grammatical mistakes this week as I am putting together this message on the beach!