Travel Expenses for Rental Property

[Jason C.]

Hi everyone, I have a rental property under a single member LLC, so I filled schedule E this year. Hoping to get more clarification/ideas how this travel expense might be deductible:

Meeting with a CPA in another state, where the property is NOT located. My intent is possibly select this CPA to do my taxes for next year. Is this considered a business trip? Are flights, meals, travel expenses deductible in this situation? Creative ideas how might it be deductible?

Thanks in advance!
(note: I did ask my current CPA. They said this is not because it is consider passive rental activities. I want to double check their advice.) 

[Ashish Acharya]

Originally posted by @Jason C.:

Hi everyone, I have a rental property under a single member LLC, so I filled schedule E this year. Hoping to get more clarification/ideas how this travel expense might be deductible:

Meeting with a CPA in another state, where the property is NOT located. My intent is possibly select this CPA to do my taxes for next year. Is this considered a business trip? Are flights, meals, travel expenses deductible in this situation? Creative ideas how might it be deductible?

Thanks in advance!
(note: I did ask my current CPA. They said this is not because it is consider passive rental activities. I want to double check their advice.) 

 You get to deduct other ordinary and necessary expenses against your passive rental income don’t you ? 

So why don’t you get to deduct this ordinary and necessary expense ? 

Also, rental income are always passive by nature but it can be a trade or business. 

We have people with 1 million dollar in rental income that is passive but it is a trade and business for them, and they get to deduct the travel expense. 

Generally, your tax home for the out of state travel deduction is considered your principal place of business. In your case, it most probably is your home. So, the travel expense should be deductible if you travel to another state to meet him. Meals as 50% deductible. 

Maybe he/she know more than your post here  and he is saying that. 

Generally if your rental rise to the level of trade or business, it is deductible under sec 162.

If does not rise up to trade or business, it is deductible under sec 212, production of income.