Costa Rica Venture

[RLymanC]

Client is constructing a residential rental in Costa Rica:
1- Are travel expenses deductable to oversee construction?
2- How about travel in the future?
3- Client will not use property for personal use

This will be a legitimate commercial venture. All travel to Costa Rica will be 100% business for the foreseeable future. Eventually it will become mixed use property.

Client thinks only 60 days rental per year.

I guess what I need to know is:
Is this property treated just like any other rental unit locally owned?

I am little worried about travel expenses.

Any thoughts on this will be appreciated.

[erchess]

What worries me

is thee 60 days rental per year. How is that going to make the ownership profitable?

[DaveO]

I'm sure your client knows what he is doing

But urge caution. I had a client that built a store in Costa Rica two years ago and had his local partners give him the boot. He found he had no standing in the courts to enforce any of the agreements. The local police operate on bribes and refuse to recognize his ownership.