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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am planning to fly to Philippines from US to potentially ...

Resolved Question:

I am planning to fly to Philippines from US to potentially buy land or house for future sale or rent.I feel many retired Americans in the future will be enticed by how inexpensive it is to retire over there,and its beauty.Can I deduct the cost of plane ticket as a write off or deduction.This would not be a vacation but a business trip-I am not in the real-estate business
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

In order for travel to be deductible, the travel has to be in connection with your current business, profession or job.

You may deduct travel expenses you had in looking for a new job in your present trade or business, but you may not deduct these expenses if you had them while looking for work in a new trade or business or while looking for work for the first time.

If you were currently in the real estate business or had other rental properties that accounted for at least a portion of your income or business activity, then some or all of your expenses for the trip to the Philippines might possibly be deductible, but under the circumstances, you are basically at this point "speculating" on the possibility of a future business venture, and would not be able to deduct any of the costs associated with this trip. If you end up buying rental property in the Philippines, then a portion of your future travel expenses to that location may be deductible in connection with your rental activities. You may refer to IRS Publication 511 for more details on this subject.

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