Travel And Transportation Expenses Related To Rental Property:
As a rental property owner, it's essential to understand the tax rules surrounding travel and transportation expenses. These expenses can be quite significant, especially if you have multiple properties that require frequent visits. In this article, we'll dive into the different types of travel and transportation expenses that can be claimed on your rental property and what you need to know about claiming them on your taxes.
What Are Travel Expenses?
Travel expenses are costs incurred when you travel to your rental property for business purposes. These expenses can include airfare, car rentals, lodging, meals, and other incidentals. However, you can only deduct travel expenses if the trip is primarily for business and not for pleasure.
If you mix business with pleasure during the trip, you can only deduct the portion that was primarily for business purposes. For example, if you take a trip to your rental property for three days and attend a business meeting for one day, you can only deduct the expenses incurred on the one day of the business meeting.
It's important to keep detailed records of your travel expenses, including receipts and any other documentation to support your deductions. You'll need to keep track of the date and purpose of the trip, the transportation costs, lodging expenses, and any other expenses that are related to the rental property business.
What Are Transportation Expenses?
Transportation expenses include any costs related to getting around your rental property for business purposes. These expenses can include car rentals, mileage, parking fees, and tolls. However, you can only deduct transportation expenses if they are directly related to the rental property business.
If you combine business and personal use of your vehicle, you can only deduct the portion that was primarily for business purposes. For example, if you use your personal vehicle to visit your rental property and run personal errands during the trip, you can only deduct the expenses related to the rental property business.
Like travel expenses, you'll need to keep detailed records of your transportation expenses, including receipts and any other documentation to support your deductions. You'll need to keep track of the date, destination, and purpose of the trip, as well as the number of miles driven and any other expenses that are related to the rental property business.
What Are Local Transportation Expenses?
Local transportation expenses include any costs related to getting around your rental property's local area for business purposes. These expenses can include car rentals, mileage, parking fees, and tolls. However, you can only deduct local transportation expenses if they are directly related to the rental property business.
If you combine business and personal use of your vehicle, you can only deduct the portion that was primarily for business purposes. For example, if you use your personal vehicle to visit your rental property and run personal errands during the trip, you can only deduct the expenses related to the rental property business.
Like travel and transportation expenses, you'll need to keep detailed records of your local transportation expenses, including receipts and any other documentation to support your deductions. You'll need to keep track of the date, destination, and purpose of the trip, as well as the number of miles driven and any other expenses that are related to the rental property business.
Conclusion
If you're a rental property owner, it's essential to understand the tax rules surrounding travel and transportation expenses. By keeping detailed records of your expenses and ensuring they are directly related to your rental property business, you can maximize your deductions and minimize your tax liability. Remember to speak with a tax professional if you have any questions or concerns about claiming travel and transportation expenses on your taxes.