Rental Property Vehicle Deductions and Taxes

3 Replies

I use TurboTax to do my rental property taxes on multiple properties. My properties are within a 1 mile radius, but I'm spreading trips across multiple properties. Is it a better strategy to record all mileage against one property? I sold my van this past year and bought a replacement, so taxes are pretty complex when calculating the depreciation for this year. It seems that TurboTax handles my one car as if it is a different car for each property. What is the best legal strategy to use for recording the mileage?

Originally posted by @Steve Salvatore :
I use TurboTax to do my rental property taxes on multiple properties.

I also use TT. I am also wondering how to allocate expenses among multiple property for things like REI seminars, newsletters, books, office expense. I can't see allocating all vehicle mileage to one property since you probably travel among your houses like I do. Do you use this vehicle exclusively for your REI properties? I had some trouble with TT when I admited I also use the vehicle for personal use.

I do not have LLCs, but I think if there was a parent LLC management company we could allocate these expenses to that. I hope someone answers this good question.

Mark Forest - I also use my vehicle for personal use, but I answered that appropriately in TTX. I don't have LLCs yet, but I don't think that would be much different. I would assume that you have to allocate the seminars, etc to one property. It gets pretty confusing when there are shared expenses.

My accountant allocates shared expenses to the property with the greatest profit. Auto expenses are one example, others are: fees paid to accountant, tools/supplies used for more than one property, advertising not related to a single property, office supplies, etc.