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Updated over 4 years ago on . Most recent reply

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Pratish SHah
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mileage tax deduction and covid

Pratish SHah
Posted

I currently own my and live in a condo which I will rent out on July 1. 

I will be moving out of state with my family on 15th june. Ideally I would have had my family just fly to the new location on 15th June and I would have joined them a few days later after making the necessary repairs before renting the place. But we have decided to drive instead due to COVID. I will have to drive my wife to the new destination because we have a 5 month old and my wife is not comfortable driving alone for 10-12 hours. So I will basically go to the new location on 15th June and then drive back in a couple of days to get the repairs done.  

The question is whether I an take mileage deduction for my trip from the new location back to my original home for the repairs? ( There is one more thing complicating this scenario a bit.  I still will be working during this time. However I can work from home and I would just have worked from home from the new location if not for the repairs. )

Please guide. 

Thanks.

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

@Pratish SHah

Depends on the nature of repairs and the lease situation.

If the condo is ready and available for rent on June 15th, and your repairs are minor/cosmetic in nature (probably the case since you lived there), and particularly if you already have a tenant signed the lease from July 1st - then you should be able to claim the property being placed in service on June 15th and deduct both the mileage and the cost of the repairs. 

The only way to be 100% sure is to discuss all specifics with a tax pro.

  • Michael Plaks
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