Collecting rent and maintaining your rentals are examples of ordinary and necessary tasks that would allow you to claim a mileage deduction. The IRS allows you to claim travel expenses for business tasks that are ordinary and necessary- meaning- legitimate, common tasks that actually help your business. However, transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business. You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. Let’s hear what the IRS has to say on the matter, and then break it down: When is mileage a deductible expense for my rental property? In this article we will explore when you can and cannot claim mileage, the best method to determine the expense amount, and what exactly the IRS requires to take a deduction. Some, like driving for your rental activities, require additional record-keeping and are only deductible in certain circumstances. However, not all expenses are quite so clear-cut. These are relatively easy to track and deduct, especially with a separate bank account for your rentals and some good accounting software. Most expenses are straightforward and have a transaction record, like a repair or property management fees. As a rental property owner, you need to be familiar with the deductions related to your investment that the IRS allows you to claim.
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