Real Estate Agent

[geekgirldany]

I have a customer that got his real estate agent license in 2006. He said he actively worked in this field but did not make any income from it. I haven't dealt with real estate agents before but I assume that they are ususally 1099 on their commissions. I need to check with him on that.

My question is, even though he didn't have any income from being an agent he can still take the deductions on Schedule C since he was actively participating? He was trying to make money from it. The only thing I don't think would be deductible would be his initial training to take the real estate agents test.

Thank you for any help

[Brian EA]

Yes , you are absolutely correct


brian

[geekgirldany]

Thank you just needed some reassurance

[jainen]

genuine profit motive

>>just needed some reassurance<<

You might be more comfortable with a friendly discussion about his expenses. You need to make sure he truly is in business, since he can't document it with actual earnings. If most of his expenses are for seminars and office furnishings, it would seem he hasn't really gotten around to it yet. On the other hand, if he spent all his time swapping sea stories at the club, he probably never will gin up a genuine profit motive.

[geekgirldany]

Yeah I know that is what I thought too. I have a call into him to get more specifics on how much he did participate trying to earn a living at this for 2006.