Travel expenses

[Mark R.]

I have two rental houses that are 400 miles from home.

I understand that to deduct overnight travel expenses, I must spend over half the trip working on a rental. What if I spend six days total, two travel days, working on one rental one day and the other rental one day, and one day of leisure? Can I deduct travel expenses?

When I drive there and work on both rentals, how do I split the travel expenses for each rental on schedule E? Divide mileage and expenses by two?

Thanks for your help.

[Bill Walston]

Originally posted by Mark R.:

Bill, that is what I would have thought also. According to Stephen Fishman's book "Every Landlord's Tax Deduction Guide", the travel days count, and he describes a clear example similar to my six day scenario.

Mark, if that is what Fishman is saying, then he is dead wrong.

Consider this from IRS Publication 463:

(You can grab a copy of PUB 463 here: http://www.irs.gov/pub/irs-pdf/p463.pdf)

So, before you can determine what, if any, travel expenses are deductible, you must FIRST determine the primary purpose of your trip. That determination is made in large part by looking at the business vs. personal activities you engage in at your destination.

I'm surprised that Fishman would say otherwise. It sounds as though you are assuming that the travel days are business days because they are greater than 300 miles away from your tax home and the travel time is more than 4 hours. That's simply not the case.

Based on PUB 463, and given the parameters that you have defined, I stand by my previous posts.