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    Jansta's Avatar
    Jansta Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 2, 2007, 10:01 AM
    No income but spent $ becoming a Realtor - what now?
    I went to school and got my license. Spent a lot of money in school, with license, becoming a member or various boards, office fees and although I had clients, I didn't sell anything in 2006. I spent a lot on gas too. Have receipts.

    What do I do about filing for my taxes?

    Your help is greatly appreciated.

    Jan : )
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 9, 2007, 01:45 PM
    Jan:

    You can claim some (but not all) of the expenses you cited on Schedule C. The expenses you incurred in 2006 can be used to offset other income (like from another job you have or, if you are filing jointly, from your spouse's job).

    The fact that you made no money in 2006 is not an issue because you were TRYING to earn income.
    Mobea's Avatar
    Mobea Posts: 220, Reputation: 15
    Full Member
    		  
    #3

    Apr 9, 2007, 06:24 PM
    You may even want to capitalize and amortorize some of your start up cost. That way you will still be able to deduct some of those cost when you're making more money. See IRS Publication 535 for good ideas about start up cost.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Apr 17, 2007, 12:03 PM
    Agreed. Real estate agents are paid and taxed as independent contractors, and you will want those deductions when you are earning those big commission checks, lest you be taxed at around 50%.
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