Client has a real estate brokers license but hadn't sold anything in several years. During 07, he was going to start selling again and rejoined MLS, installed phones, logo, registered a name, etc. Then his wife was diagnosed with a rapid spreading cancer and everything stopped. All he sold in 07 was his own property which will go on a Sch D.
Can he expense the start up expenses on the Sch C since he didn't sell anything or could the expenses be added to the basis of his sold property? Or should they just fall by the wayside?
Thank you
Pat Eure, EA