Thank you! This helps a lot!

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MNRealEstate wrote:

- quote -

Expenses incurred in identifying a suitable property get
capitalized into the acquisition cost of that property.
Expenses incurred where no property is purchased are lost
(no deduction or capitalization).

1) Not relevant.
2) No.
3) None. LLCs are disregarded entities.

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Happy New Years to all of you! I am planning a few trips in
2005 to find my first rental property and fulfill my New
Year's resolution. 1) Do I have to form a business entity in
order to deduct these travel expenses as business? 2) What
if I fail (God forbid) on purchasing property in 2005, can I
still claim my travel expenses as business? 3) If I choose
to form an LLC later (say 3 years down the line when I have
several properties under my belt), what tax consequences
might I face?

Thank you in advance for your insights!

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