Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity. This includes driving costs incurred for rent collection, meeting your tenants to handle their problems and going to the hardware store to buy tools and materials for repairs.
In my case, I travel to my rental properties frequently, usually just to do a drive by and make sure everything looks like it should.
I used to drive by one of my properties on a daily basis, because I was having trouble with the tenants. They were pretty good tenants for the first two years that they were there, then things started to slowly unravel the next two years. They started paying their rental checks later and later. They weren’t keeping up the front yard. They were having large parties.
Finally, the cops had to come to the house and break up a party, and that was the last straw. I evicted them (by simply canceling their month-to-month contract). Now, I don’t drive by the property so frequently, because we have more reliable tenants.
To claim these travel tax deductions, you must keep a travel log, and just write down the milage each time you travel for landlord related business.The travel claim is made on Schedule E of your tax forms.
You allowed around 50 cents per mile by the IRS. The amount changes over time on the tax instructions, so you must verify how much it is each year. You just mulitply the number of miles that you have driven by the amount allowed per mile, and that is the amount you enter as your deduction.
The Best of Carve Out Your Niche 2011
* * *
Tags: income tax, tax deduction, traveling to rental properties
Terry,
Out of curiosity, Do you also deduct miles driven looking for future properties that you might purchase? I am usually doing this while I am driving by my properties, but on occassion I make a special trip just to “Drive for Dollars”.
Ch.
Chuck,
Yes, you should definitely include miles driven for looking at future properties in your milage count.