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Updated about 7 years ago, 11/20/2017

User Stats

69
Posts
12
Votes
Mike Bereck
  • Cleveland, OH
12
Votes |
69
Posts

Getting mileage write off

Mike Bereck
  • Cleveland, OH
Posted
If you have a home office you use for your rental company and you go driving for dollars, can you claim the standard mileage deduction?

User Stats

515
Posts
403
Votes
Brian Adzadi
  • Allentown, PA
403
Votes |
515
Posts
Brian Adzadi
  • Allentown, PA
Replied

I don't think you can write off driving for dollars. You can only write off for the property you already have attained and are driving back and forth for maintenance and other property related issues. If you had a real estate holding company and you buy properties under that company then I think you can do it because it will be considered a business expense.  

User Stats

69
Posts
12
Votes
Mike Bereck
  • Cleveland, OH
12
Votes |
69
Posts
Mike Bereck
  • Cleveland, OH
Replied

@Brian Adzadi  I thought so but I just wanted to make sure.  Thanks for the reply!

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User Stats

4,995
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5,785
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Michael Plaks
Pro Member
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
5,785
Votes |
4,995
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Michael Plaks
Pro Member
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

@Mike Bereck

It is a grey area, which means you can - if you do not mind the surrounding controversy. The issue will be whether you qualify as "a trade or business."

  • Michael Plaks
  • User Stats

    62
    Posts
    44
    Votes
    Vlad K.
    • Realtor
    • Glastonbury, CT
    44
    Votes |
    62
    Posts
    Vlad K.
    • Realtor
    • Glastonbury, CT
    Replied

    @Mike Bereck assuming you have a functioning business - yes you can. The mileage you put on for your business is deductible

    User Stats

    69
    Posts
    12
    Votes
    Mike Bereck
    • Cleveland, OH
    12
    Votes |
    69
    Posts
    Mike Bereck
    • Cleveland, OH
    Replied

    @Michael Plaks  How would you say I get that issue straightened out?  

    User Stats

    69
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    12
    Votes
    Mike Bereck
    • Cleveland, OH
    12
    Votes |
    69
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    Mike Bereck
    • Cleveland, OH
    Replied

    @Vlad K.  Sweet.  So I would most likely take the millage deduction because it would be on my personal car and it would be easier to deal with when tax time comes.

    User Stats

    62
    Posts
    44
    Votes
    Vlad K.
    • Realtor
    • Glastonbury, CT
    44
    Votes |
    62
    Posts
    Vlad K.
    • Realtor
    • Glastonbury, CT
    Replied

    Yes, just keep track of the business related mileage. Remember that you always have option to choose between actual expenses, but with prices of gas still low and mileage deduction still high @ $0.535 / mile mileage deduction will likely be more beneficial to you. 

    User Stats

    51
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    15
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    Erik Perks
    • Herrin, IL
    15
    Votes |
    51
    Posts
    Erik Perks
    • Herrin, IL
    Replied

    MileageIQ is a good app for tracking mileage while you are driving for work assuming you go after the miles and not tracking expenses.

    User Stats

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    5,785
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    Michael Plaks
    Pro Member
    #1 Tax, SDIRAs & Cost Segregation Contributor
    • Tax Accountant / Enrolled Agent
    • Houston, TX
    5,785
    Votes |
    4,995
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    Michael Plaks
    Pro Member
    #1 Tax, SDIRAs & Cost Segregation Contributor
    • Tax Accountant / Enrolled Agent
    • Houston, TX
    Replied

    @Mike Bereck

    Nothing to straighten out. @Vlad K. is generally correct, however he may have missed the fact that you're talking about rentals. They are not automatically treated as a business. But if you have multiple properties and substantial time invested, then you probably qualify as a business. And if you do - then mileage is deductible.

  • Michael Plaks
  • User Stats

    69
    Posts
    12
    Votes
    Mike Bereck
    • Cleveland, OH
    12
    Votes |
    69
    Posts
    Mike Bereck
    • Cleveland, OH
    Replied

    Also if you have a home office at your home and you drive to let’s say you have a big apartment complex you should be able to write that trip off every day you go there?

    User Stats

    4,995
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    5,785
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    Michael Plaks
    Pro Member
    #1 Tax, SDIRAs & Cost Segregation Contributor
    • Tax Accountant / Enrolled Agent
    • Houston, TX
    5,785
    Votes |
    4,995
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    Michael Plaks
    Pro Member
    #1 Tax, SDIRAs & Cost Segregation Contributor
    • Tax Accountant / Enrolled Agent
    • Houston, TX
    Replied

    @Mike Bereck

    Yes, if you want a short answer, without various small print disclaimers

  • Michael Plaks
  • User Stats

    62
    Posts
    44
    Votes
    Vlad K.
    • Realtor
    • Glastonbury, CT
    44
    Votes |
    62
    Posts
    Vlad K.
    • Realtor
    • Glastonbury, CT
    Replied

    @Mike Bereck, that is correct. If you have a home office (used exclusively for business / rental), you can take deduction for your trips to and from your properties. 

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    User Stats

    17
    Posts
    8
    Votes
    Lindsey Crawford
    • Springfield, TN
    8
    Votes |
    17
    Posts
    Lindsey Crawford
    • Springfield, TN
    Replied

    Similar topic. Is it more cost efficient to claim miles on your own vehicle or purchase one with your business and deduct that way?

    Lindsey

    User Stats

    62
    Posts
    44
    Votes
    Vlad K.
    • Realtor
    • Glastonbury, CT
    44
    Votes |
    62
    Posts
    Vlad K.
    • Realtor
    • Glastonbury, CT
    Replied

    @Lindsey Crawford it depends on several factors, primarily how much it will cost you out-of-pocket for gas, insurance, property taxes, maintenance, etc. 

    Simply put, if you have 40-50 MPG Toyota or Honda, mileage deduction would probably be your best option, but if your car is 12 MPG Range Rover, chances are you would be better off having this one as a business car.