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Updated almost 8 years ago,
Tax Writeoffs Out of State Property-
We reside and pay California tax. We have rentals in Ohio, Hawaii and Nevada now. For travel expenses we have racked up a lot of expenses on a property in Hawaii.
For the Hawaii duplex. We legitimately have been flying there 4 times a year to fix up the property, meet property manager, deal with tenant legal issues etc. Travel Expenses are rental car, gas, flights (about $8k), food expenses etc. We literally had code enforcement write up everything on the property, as well as code enforcement and a bad eviction so we had to visit the property a lot and have tons of losses and expenses.
We only had about $6,000 in rental income, about $6k in repairs and $15,000 in capital improvements... yet have $12,000 in travel expenses and $2000 in meals from trips. I could see how this could look like a red flag to an auditor
I am not sure if my Tax advisor is just too conservative, but he keeps recommending that we don't write off that much. He basically said just writeoff about $6,000 in expenses.
I feel like we have enough of a paper trail and receipts to show our travel relates to expenses and legit travel, but I also don't want to make it seem like we're doing these trips just for
Anyone have advice here? Is my tax advisor just too conservative or does he have a point. I don't want to miss out on write offs that are legit. But he advised that getting audited will just be an expensive, time consuming