@Lindsey Crawford it depends on several factors, primarily how much it will cost you out-of-pocket for gas, insurance, property taxes, maintenance, etc.
Simply put, if you have 40-50 MPG Toyota or Honda, mileage deduction would probably be your best option, but if your car is 12 MPG Range Rover, chances are you would be better off having this one as a business car.
I don't think you can write off driving for dollars. You can only write off for the property you already have attained and are driving back and forth for maintenance and other property related issues. If you had a real estate holding company and you buy properties under that company then I think you can do it because it will be considered a business expense.
It is a grey area, which means you can - if you do not mind the surrounding controversy. The issue will be whether you qualify as "a trade or business."
@Vlad K. Sweet. So I would most likely take the millage deduction because it would be on my personal car and it would be easier to deal with when tax time comes.
Yes, just keep track of the business related mileage. Remember that you always have option to choose between actual expenses, but with prices of gas still low and mileage deduction still high @ $0.535 / mile mileage deduction will likely be more beneficial to you.
Nothing to straighten out. @Vlad K. is generally correct, however he may have missed the fact that you're talking about rentals. They are not automatically treated as a business. But if you have multiple properties and substantial time invested, then you probably qualify as a business. And if you do - then mileage is deductible.
Also if you have a home office at your home and you drive to let’s say you have a big apartment complex you should be able to write that trip off every day you go there?
@Mike Bereck, that is correct. If you have a home office (used exclusively for business / rental), you can take deduction for your trips to and from your properties.
@Lindsey Crawford it depends on several factors, primarily how much it will cost you out-of-pocket for gas, insurance, property taxes, maintenance, etc.
Simply put, if you have 40-50 MPG Toyota or Honda, mileage deduction would probably be your best option, but if your car is 12 MPG Range Rover, chances are you would be better off having this one as a business car.