Discussion:Can rental property owner get a deduction for mileage between home and rental property?
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Discussion Forum Index --> Tax Questions --> Can rental property owner get a deduction for mileage between home and rental property?
| 17 March 2007 | |
| I have had some tax preparers say yes, others say no. The no people say that it is like commuting to a job. Once there, they say, any round trips to the hardware store to get supplies for the rental would qualify.
Anyone sure whether yes or no on the home to rental property trip? | |
| 17 March 2007 | |
| Heck yes. The ordinary and necessary expenses paid or incurred in the management, conservation, or maintenance of property held by the taxpayer as rental property are deductible from gross income in arriving at adjusted gross income. Generally, deductions that would be allowed if incurred in a trade or business --advertising, repairs, depreciation, etc. --are deductible if incurred in connection with rental property, whether or not the property is actually rented. For example, expenses related to rental property that produces no income because of ongoing renovations are deductible if the owners do not use it personally, have rented it previously, and intend to rent or sell it in the future. However, continued rental activity is advisable if the property is to remain within the category of rental property. | |
| 18 March 2007 | |
| Most definitely - I take the mileage to rentals as expense, myself included | |
| 18 March 2007 | |
| rental is so much different, given the fact you can deduct things like repairs, management fees, cleaning, utilities, depreciation on the property... mileage OH YEA! | |
Michaelstar (talk|edits) said: | 18 March 2007 |
| Kendrick - take a look at Pub 527, page 4 under the title of "travel expenses" - From what I read - it says there are times one can - and there are times one may not. I thought the answer was yes all of the time until I just looked this up for you (and myself so that I was correct in my answer).
link:http://www.irs.gov/pub/irs-pdf/p527.pdf It brings up a question - do we allocate travel to the improvement and capitalize it - looks like we should. Any other opinions - read the site before you answer. | |
| 18 March 2007 | |
| Michaal - I just read the pub you cited. I only see where mileage would be ok, if used to maintain the rental, collect rent - what am I missing? | |
Actionbsns (talk|edits) said: | 18 March 2007 |
| Michaelstar, I see what you mean, Klesher, read the heading Travel on page four. What a nightmare!!! Are you really going to capitalize tiny little trips if you're property is fairly local? If you need to book an airline, or a train, or something significant, it might make sense. I have a client who owns property on the other side of our island. A trip over there might be 200 miles total, are you really going to capitalize that? What a headache of recordkeeping. | |
| March 18, 2007 | |
| I'll capitalize the mileage rate when the owner of a rental property makes major improvements to the property while it's unavailable to rent. It's not really a headache....just multiply the mileage rate by the total miles and add the total to the total improvements and start depreciating when the property is available to rent. | |
Death&Taxes (talk|edits) said: | 18 March 2007 |
| Didn't you know that no one makes an improvement, according to them. It's all a repair. | |
| 12 February 2009 | |
| I have a client that wants to deduct mileage from WA to AZ - the initial intent was to buy a rental property and then rent it to his daughter. However, after purchasing the property, he decided to treat it as a second home (and let his daughter stay in it). I'm thinking this is a bit of a stretch - anyone agree? | |
Death&Taxes (talk|edits) said: | 12 February 2009 |
| I'm waiting for one of our normal fraud hurlers to say 'stretch in prison.'
I use that old aphorism, 'can you say it without smiling?' | |
| 12 February 2009 | |
| Not without shaking my head at least.
Is there a list of the normal fraud hurlers somewhere? | |
| 12 February 2009 | |
| the list is longer than the list of those who hurl extraordinary fraud. | |
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