maxmagic 0 Report post Posted April 2, 2004 I have an LLC set-up. Can I write off referrals and bird dog fees as expenses in my taxes? Share this post Link to post Share on other sites
Dave T 0 Report post Posted April 3, 2004 Yes, but indirectly. These fees are acquisition costs added to your cost basis. Your basis is either recovered when you sell the property, or through depreciation if you hold the property. Share this post Link to post Share on other sites
Courtney Kostelecky 0 Report post Posted April 11, 2004 I don't see why you couldn't call it "advertising expenses." Courtney Share this post Link to post Share on other sites
Dave T 0 Report post Posted April 13, 2004 Because they aren't. They are commissions -- only paid if the property is purchased -- and therefore an acquisition cost that is a cost basis component of your purchase price. In practice, you can call them anything you want to. An IRS auditor will tell you whether your treatment is allowed or disallowed. Share this post Link to post Share on other sites