Visiting my short-term rental. What can (and can't) I write off on taxes

[Joshua Myers]

Hey all! I live in Ohio and own a condo in Destin, Fl that we use as a STR. We are going to visit next week and stay in the property. We have been renting it out since September. There are a few things that I will doing at the condo while they're like upgrading furnishings, etc, but we will also be spending a lot of time at the beach and enjoying our time off.

I'm wonder if I can count any travel expenses like gas, hotel, etc while I'm down there. If so, what records should I keep?

Any help is greatly appreciated.

Thanks!

[Linda Weygant]

The answer is "IT DEPENDS" - just like most answers to tax questions.

The IRS permits a deduction for business expenses that are "ordinary and necessary" in the course of the business and that enables you to generate revenue.

Some questions I would ask if you were my client:

1.  Do you have a property manager and/or a local repair person?  If so, why are they not able to take care of these issues?  (Necessary)

2.  Do most property owners travel cross country to upgrade furnishings, etc? (Ordinary)

Now, let's assume that you are able to document that your travel expenses there are both ordinary and necessary.  What's deductible?  All of the mileage, travel, hotel and meals expenses for your entire vacation?

No, of course not.

Let's say your trip is for 14 days and you spend 2 full days working on the property.  2/14 (about 14% of YOUR travel expenses - not your children, not your spouse) would then be deductible.

Now let's say your trip is for 14 days and you spend 30 minutes every day working on the property.  Does that make the whole thing deductible?

No, of course not.

The IRS also has a rule regarding "significant personal pleasure" such that travel that has a significant personal pleasure component becomes non deductible.  You're better off dedicating whole days to the property and deducting that percentage rather than trying to extend the work and risk having the "personal pleasure" component come into play.