Posted by lyal on December 17, 1999 at 09:19:38:
Susan,
I use a DOME book (available at your local OfficeMax, Staples etc). Enter your info periodically (monthly??) and it is all categorized as to deductible etc. My accountant LOVES it. Makes her life easy.
You still need to retain the receipts as proof but don’t need to go thru and tally everything as its already in the book.
Lyal
Can we write off a newspaper subscription as a ‘necessary’ expense for our R.E. business? - Posted by SusanL.-FL
Posted by SusanL.-FL on December 16, 1999 at 15:08:09:
or just the newspaper ad?
Just a thought! But whyyyyy not??? Sounds good to me!! 
Re: Can we write off a newspaper subscription as a ‘necessary’ expense for our R.E. business? - Posted by Ken
Posted by Ken on December 18, 1999 at 13:46:21:
Take everything that even remotely seems like a deduction that you can justify to yourself. Even if you get audited ten years down the line you’ll have been able to take seven years worth of deductions.
Followup Question (Sched E) - Posted by Bert G
Posted by Bert G on December 17, 1999 at 10:41:38:
So far, all my REI has been in rentals as a sole proprietor, so my business is reported on Scedule E. How does one go about deducting these kind onf incidentals on that? The form has columns for each property, and I can’t find a space for things like CREO conventions and Bronchick Books.
I did recently form a C-corp as a management company, but rather than get confusing for 2 months decided to start doing business with it in January. (Should be an easy corporate return this year. Income $0. Expenses $300)
Thanx
BG
Absolutely! And don’t forget to read this… - Posted by HR
Posted by HR on December 16, 1999 at 20:52:25:
Susan,
You can deduct the ad, the subscription, your subscription to Home and Garden, etc etc etc. They are necessary tools to do your biz (whatever aspect of rei it is). This isn’t even grey!
To find out more about how you can LEGALLY transform personal expenses into business expenses, you must read Keep Your Hard Earned Money by Fellman.
Good luck, and Happy Holidays!
HR
Ps. Gifts are also deductible, up to $25 is it?
One advantage of the corporation - Posted by Bud Branstetter
Posted by Bud Branstetter on December 16, 1999 at 17:56:03:
No problem using a corp. If you deduct on a schedule C as an individual it is subject to a floor. You can spread it across several schedule E’s if you own income property. The problem may be to justify how that ad or that RE course involved that property.
Re: Can we write off a newspaper subscription as a ‘necessary’ expense for our R.E. business? - Posted by DB_ATL
Posted by DB_ATL on December 16, 1999 at 15:53:54:
I do, and any periodical, books, courses, or other material that is purchased for use in real estate investing. I an not an accountant, but my understanding is that any business related materials such as these is deductible, as is real estate association membership, etc. As long as you are serious enough that the IRS doesn’t classify it as your hobby. There are guidelines for such deductions on the irs web site.
I Can! - Posted by Tim Randle
Posted by Tim Randle on December 16, 1999 at 15:52:53:
Susan,
First, I’m not acting in my capacity as an C.P.A. here, but I will be taking that expense. The classifieds are 95% of the reason I subscribe, and I don’t think I’m actually going to the trouble of calculating 95% of the expense as a deduction. I’ll be interested in other responses, but I doubt any will change my mind. Good investing…
Yes, all sorts of forgotten little ‘items’… - Posted by SusanL.–FL
Posted by SusanL.–FL on December 21, 1999 at 10:02:05:
I’ve even written off ‘dry cleaning’ bills in the past —re: company uniforms.
When I was an indep. contractor, I was entitled to a daily ‘food allowance’ while on the road—so I saved all my food receipts.
A couple years ago, Kenny built a ‘barn’/storage structure to ‘house’ company inventory and he was able to write that off. (Think it had to be prorated over several years.)
I know there are all sorts of things. I usually save everything ‘questionable’ then let the CPA weed it out if it doesn’t qualify for the ‘gray’ area.
Still miss the write-offs on credit card interest that we used to have!
Thanx!
Have a good day.
P.S. Even the trips (mileage) to check out our rentals…something that the newbies may not be aware of.
Itemizing our deductions?.a necessary ?evil?..ugh… - Posted by SusanL.–FL
Posted by SusanL.–FL on December 17, 1999 at 08:48:07:
Thanx everybody!
But oh m?gosh, the paperwork involved!!! Don?t know if I am making a mountain out of a molehill about this but I wish there were an easier (and faster) way to maintain all of these receipts (aside from hiring a bookkeeper to do it ?a luxury which I can?t afford right now).
If you guys have any ideas, believe me, I am ALL ears.
What I have been doing all these years is—I set up separate folders for the various categories (gasoline, stamps, medical, office supplies, etc.) Then for the real estate investments, I just set up separate folders for each property and throw the respective receipts into each folder. Then at tax time, I just tally up each category and log it onto a sheet for my CPA at income tax time.
A separate drawer for banking-related stuff: checking accounts (had 7 or 8 going last year?but have since pared down), savings accounts, IRAs, credit union, etc.
Believe me, I could make a CAREER outta filing receipts!!
I have to say, though, that the volume (of receipts) HAS diminished somewhat since the days of independent contactoring (in our jobs) and also now just holding the Notes (on properties) as opposed to ?landlording? (with repairs & other property-related expenses).
Several years back I had FIVE file drawers of folders to go through and tally up!!! It was horrendous—but I just had to put my mind to it and folder by folder I got through it.
Any tips or shortcuts?? I?m a ?quick study?. Thanx!
Re: Itemizing our deductions?.a necessary ?evil?..ugh… - Posted by Bud Branstetter
Posted by Bud Branstetter on December 17, 1999 at 22:06:29:
I enter the items into quickbooks so it is already catagorized. But I also file the receipts in an envelope by month. If you have sort through 50 receipts to find one it is not hard to match date, amount and vendor.