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Updated over 9 years ago on . Most recent reply

User Stats

45
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Matt N.
  • Investor
  • Clayton, MO
6
Votes |
45
Posts

Specific Tax Question For Representing Myself In Property

Matt N.
  • Investor
  • Clayton, MO
Posted

Hi All,

This is my first year recording my mileage. I am a real estate agent and work full-time as an attorney for a corporation. Accordingly, I only spend a small percentage of my year working as an agent v. attorney; however, I do have several clients and deals. My question is twofold: 

1) Can I write off mileage for a property that I purchased for MYSELF as a rental property in which I do not live? I was the acting agent on the property and took a commission on the property but, again, I purchased this for myself.

2) I routinely go from home to work (actual job) and then from work to either one of my properties as a property manager or to meet one of my clients to look at properties, etc. I should have no problem reporting the mileage from my unrelated job home base to the properties I meet my client at, correct? What about from my home to a property that I meet my clients at, considering I usually only drive from my home to one of these properties during the weekend or after my normal 8-5 job work hours. I am having some trouble with this due to the fact that my actual job is my actual job and anytime I drive from my house to a client I am going to look at a property with them. 

As for the property management aspect of it, I can report mileage from my home to that property, correct? 

Thanks so much for any help!

Cheers!

Most Popular Reply

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5,271
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2,325
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
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5,271
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied
Originally posted by @Matt N.:

Thanks so much, Steven. So, for example, driving from my primary place of work to a property to show it to a client would be ok and I could record those miles. So would driving from the property to my home (since the property is not my principal place of business). I assume that would be designated as a "temporary work location" if anything. Or would it be considered a second job? 

Anytime to home is not deductible. UNLESS you stop there between appointments(it would be considered an intermediary stop). Say on your way to your rental after you leave your primary job.

For the sake of argument, since my primary work place is where I work 8-5, couldn't I log the mileage for every single trip from my job to property viewings, closings, etc., and back home since these real estate deals aren't my primary job/I don't have a place of business as a real estate agent (belong to a brokerage but have never shown up there) and are temporary in nature (e.g., my client gets into a contract, I show him property, show up for inspection, closing, etc. -- that is only going to last 45 days max usually so I would assume all trips to the property and even from the property to my place of residence would qualify as mileage under the temporary work selection.) I know the trip from property to place of residence is a little more blurry but I am just looking for an argument for and against. Would appreciate any further guidance you might be able to give, Steven.

Work to the property is deductible. Property to Home is not.

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
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