The Right Way to Track Miles for Tax Purposes

[Eric Petersen]

Hey all you cool real estate people,

I searched on something that I thought was an obvious question to no avail finding an answer. 

I'm trying to figure out how to track miles for tax deductions. The biggest thing I'm trying to figure out, do I count the miles coming back from my rental property after going out there for maintenance?

My property is 20 miles away, I am going out there for maintenance straight from my home, after I do the work, I am headed straight back to my home. Does that mean I mark in my log I traveled 40 miles that will be used for the deduction (there and back) or do I log only 20 miles (there and that is it)? The internet cannot seem to address this one question.

Thanks!

[Daniel Hyman]

@Eric Petersen

You would not be able to deduct commuting miles from home to the property, but you would be able to deduct miles from the property to another location related to the rental (eg: bank, Home Depot, vendor's office, another property, etc). So, once you arrive at your rental office or rental property, you may deduct trips to other rental-related locations. But not trips back home.

If you have a home office which is your principal place of business, you have more flexibility.

[Eric Petersen]

@Daniel Hyman thanks for the response. That almost seems like it ruins the spirit of the deduction but hey, I'm not the one who makes tax policy.