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Updated over 14 years ago,
Tax deductions when running errands for my properties
During the first week of the month, like most landlords, I'm tasked with collecting rent, paying bills and utilities, and as always, looking for more property to acquire.
I have never expensed lunch when i'm out and about running these "errands" but a fellow landlord told me that he was deducting the normal 50% of the cost of meals when tax time rolls around.
For example, my friend leaves his office at 10am, and drives to a property and collects rent from 6 tennants. 11am, he drives to a 2nd property to collect rent from 4 tennants. then it's noon. He stops by McDougals, sits down and has a $7 lunch, keeps the receipt, then drives to a 3rd property and collects his remaining rent.
now we all know the mileage driven is deductible in full for those trips, but what about the lunch cost?
Quick searches tell us that it has to be reasonable, and related to your business in order to claim the tax deduction.
Can someone clarify if it's possible to deduct the lunch as a business expense in the above scenario? Also, what if the errand is simply running to the post office at lunchtime to check your PO box and grabbing lunch on the way. Are these legitimate deductions i've been missing all along?
Thanks,