We had a great call last night. Really good questions. We had a few questions sent in afterwards. One relates to a frequently asked question by Rich Dad students.

Q: My wife Becki and I have recently started and LLC real estate investment business as suggested by Rich Dad. We have invested a lot of money into the rich dad program and were under the impression that it would be tax deductible from our earned income, is any of this expense deductible from earned income, or from any other avenue such as the business.

A: Possibly. Education expenses are deductible to the extent they are to improve an existing business. Say, for example, you currently own real estate and you want to improve your real estate skills so you take Rich Dad Education classes. These expenses would be deductible.

However, if the education is for a new business, these expenses are considered "start up" expenses. They don't start being deductible until you begin the new business, which means you are open to customers (for rental real estate, it means you have your first property available for rent). We do have a course on start up expenses that you can find at http://www.provisionwealth.com/products.

Warmest regards,

Tom

This was the title of our Tax Teleconference last night in our School of Tax Strategy. There were a couple of questions that I said I would answer in my blog this morning. Here you go.

Q1: What is the standard deduction for dependent children on their own return?

A1: It's the same as for adults, though it is limited to their earned income. If no earned income, then it's $950.

Q2: Insurance companies are telling me that I can't get my rental property in Ohio insured if I live out of state. Is this true?

A2: Please contact my Allstate agent, Wayne Smith, at 480.464.8766. He can help you find the answer to this.

Warmest regards,

Tom