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Summertime Travel Tax Deductibles
The summer travel season is almost upon us. Keep in mind that if your summertime travel is primarily for rental property business such as inspection of your property, then a portion of the trip may be tax-deductible. As long as most of your travel days are for rental property business, you can deduct the cost of travel (airfare, trains, car), hotel, parking, taxi service, meals, and so on.
As defined by the IRS, travel expenses are the Ordinary and Necessary expenses of traveling away from home for your rental property business, profession, or job. An Ordinary expense is one that is common and accepted in your field of trade, rental property business, or profession. A Necessary expense is one that is helpful and appropriate for your rental property business. An expense does not have to be required to be considered necessary.
The key factor is that your trip must be primarily for rental property business. Days of leisure can be added to a trip and still be considered primarily for rental property business. The more days and time per day spent on rental property business will help substantiate the trip. There are no set rules on how many days and how much time per day need to be spent on rental property business for your trip to be considered rental property business related.
Keep all the documentation for rental property business-related travel, including confirmations of appointments, emails, phone records, registration to conferences, etc. The days spent traveling to and from a rental property business trip are considered part of the trip. This includes the weekend if it is impractical to come home. Planning ahead can make this happen.
What Expenses Are Deductible?
Here’s what you can deduct when you travel away from home for rental property business.
Transportation Expenses
You can deduct Transportation Expenses when you travel by airplane, train, bus, or car between your home and your rental property business destination. If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero
Taxi, Commuter Bus, Subway, and Airport Limousine Fares
You can deduct the fares for these and other types of transportation that take you between
* the airport or station and your hotel, and
* the hotel and the work location of your customers or clients, your rental property business meeting place, or your temporary work location.
Car Expenses
You can deduct the cost of operating and maintaining your car when traveling away from home on rental property business. You can deduct actual expenses or the standard mileage rate, as well as rental property business-related tolls and parking. If you rent a car while away from home on rental property business, you can deduct only the rental property business-use portion of the expenses.
Lodging and Meals
You can deduct your lodging and meals if your rental property business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Meals include amounts spent for food, beverages, taxes, and related tips. Additional rules and limits may apply.
Cleaning Clothes
You can deduct the dry cleaning and laundry expenses you incur while away on rental property business.
Telephone
All rental property business calls while on your trip are deductible. This includes rental property business communication by fax machine or other communication devices.
Tips
You may deduct the tips you pay for any expense listed above.
Other Expenses
You can deduct other similar ordinary and necessary expenses related to your rental property business travel. These expenses might include transportation to or from a rental property.
You might also want to read:
- 2011 Tax Tips For Real Estate Agents and Professionals on Travel and Entertainment Expense Real Estate Agents and Professionals – Deduct all travel and entertainment expenses in 2011 that are ordinary and necessary for your real estate business. According to IRS, ordinary means those......
- 2010 Year End Tax Tips for Landlords – Claim Your Travel and Entertainment Expenses Deduct travel and entertainment expenses incurred when traveling for your rental business. If you travel overnight for your rental business, deduct your airfare, hotel bills, meals and other expenses.......
- Tax Tip for Deducting Travel Expenses and Meal Expenses Tax Tip for Deducting Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related such as rental property management. If your......
