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I was just perusing “Inside Costa Rica” and came across an article about buying foreclosed property during the economic downturn. The article stated that if you have an S.A., you might be able to write off travel expenses to and from the country that you live in, depending on the country. Does anyone have insight about this? Has anyone in the forum had any experience with this loophole? Is it only useful if you have some business or income property in Costa Rica or can I avail myself of the write-off with just a house for personal use?
editer
This is my experience, if you have a real estate related business or LLC in the states, any trip that you can document time spent with real estate personel can be a business deduction-not sure if it’s a percentage or what exactly the amount, including flight and food and lodging.
My accountant says this can be a red flag (obviously or everyone would write off vacations) so careful documentation is needed. You can set up an LLC for around 500$, so if you need to take multiple trips looking for property it can pay off. It would need to be income, business or rental in some form (wink wink) and it would only matter if you do buy something and have a tax bill. But it could take two or three trips to find something. Now my ex-husband went to CR a few years ago looking at teak plantations, not houses but still wrote-off the entire trip as a business expense.
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