Splitting Travel Expenses for two prope.rties

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Splitting Travel Expenses for two prope.rties

Chris Seidler
Investor · Dayton, OH · Member since 2023 · 14 posts · 13 votes

If you have two properties in two different states and visit both of them for business purposes on thr same trip, how do you split the travel expenses?

Example with round numbers to KISS:

-Travel from residence to property A.  $300 mileage, two nights in a hotel ($300 total).

-Travel from A to B in the next state over.  $100 mileage, three nights with family so no lodging per diem.

-Travel from C back to residence.  $300 mileage.

in this example there is $1000 in deductible expenses.  Do we allocate based on days at each property (so 2/5 and 3/5)? Do we allocate each expense to a specific property, so all the hotel goes to A? Thanks!

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
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My W2 friends would ask "What is the corporate policy?"  Since you control the corporate policy, that is a decision you can make.  There really is no wrong answer as long as there is a reasonable justification should the IRS question it.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    1y

    My W2 friends would ask "What is the corporate policy?"  Since you control the corporate policy, that is a decision you can make.  There really is no wrong answer as long as there is a reasonable justification should the IRS question it.

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  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 899 votes
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    Allocate the travel expenses based on the primary purpose and time spent at each property. A simple method is to prorate by days (e.g. 2 days at A, 3 at B = 40% to A, 60% to B). Or, if a specific expense clearly ties to one property (like a hotel near A), allocate it fully to that property. Keep good records to support your method.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
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    @Chris Seidler When traveling for business to multiple rental properties, the IRS allows you to allocate travel expenses proportionally based on time spent and business purpose. In your case, 2 days at Property A and 3 at Property B—you’d typically split expenses as follows:

    • Mileage ($700 total): Allocate by days—2/5 to Property A ($280) and 3/5 to Property B ($420), unless there's a more precise method based on actual distances.
    • Hotel ($300): Deduct 100% to Property A, since the lodging was only used while working there.
    • Meals (per diem or actual): Split by day—2/5 to A, 3/5 to B.

    For tax reporting, each portion of the expense is deducted on Schedule E, under the specific property that incurred the cost. These are ordinary and necessary expenses tied to the management, maintenance, or acquisition of rental property, making them fully deductible if properly documented. Keep a log of activities, dates, mileage, and receipts to back up the deduction in case of an audit.

    This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

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  • Account Closed
    Accountant · NY · Member since 2025 · 39 posts · 41 votes
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    The IRS expects expenses to be allocated in a “reasonable” way based on the purpose and time spent for each property. There isn’t a strict formula in the tax code.

    Total trip: 5 days

    2 days at Property A: 40%

    3 days at Property B: 60%

    You’d allocate:

    $700 mileage × 40% = $280 to A, $420 to B

    $300 lodging × 40% = $120 to A, $180 to B

    Meals (if using per diem or actuals) also split 40/60

    Document everything! Dates, addresses, business activities, who you met with, and what was done at each property. The cleaner your documentation, the less questions the IRS will have if audited. 

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  • Kevin Aumack
    Glassboro, NJ · Member since 2025 · 37 posts · 13 votes
    1y

    Hey Chris,

    I would start by allocating the direct expenses to the properties you know they correlate too. Then, just allocate the rest based upon the nights. For example:

    Breakdown:

    Mileage:
    Home to Property A = $300 (allocated fully to Property A)

    Property A to Property B = $100 split by days (2 days at A, 3 days at B) → $40 to Property A and $60 to Property B

    Property B to Home = $300 (allocated fully to Property B)

    Lodging:
    Two nights at Property A = $300 (fully allocated to Property A)

    No lodging cost for Property B (stayed with family)

    Property Mileage Lodging Total
    Property A $300 + $40 = $340 $300 $640
    Property B $60 + $300 = $360 $0 $360
    Total $700 $300 $1,000
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