Posted by John Behle on February 04, 2000 at 20:05:41:
I leave most accounting and tax questions to my own accountant. I can’t give legal or tax advice, but only my opinion.
Expenses are deductible on a business - if you make a profit. It used to be something like 3 out of 5 years, but I’m not certain what it is now. I just focus on making it profitable all years.
If the business has or will turn a profit, then you can likely take the expenses. If not, the IRS considers it a “hobby” and you might now.
Your answer to all these questions needs more specifics. What type of income, how much, did you make a profit last year, the year before, how many notes is “a few”, how much real estate is there?
These are all variables that could influence it. I’d post a more detailed post over on newsgroup 1 where you have some accountants and others that would be far more qualified to answer.