Help understanding what options exist for 2012 taxes

[Tom Kerwin]

I have been doing some reading on the forum and have seen some close matches to my issue but am hoping for some help understanding our situation.

First off my son purchased a rental property with a mortgage in his name. My wife and I contributed 50% of the downpayment. We intend to start an LLC, but have not yet. The rental was a short sale and required much rehab. Because of the amount of rehab we have not rented it yet and have spent the last several months working on the house. We each have invested about $15K into the house and many hours of work. I live about 100 miles from the house and commute to the house a couple of times a week.

This about sums up the current situation. We hope to purchase another rental this year and start the LLC. But, in the meantime is it possible to recoup my mileage expense (about 3,000) in 2012? Also, anything we can do about reducing our 2012 tax bill?

Thanks for any feedback.

[Steven Hamilton II]

Shaun Reilly,

Those 3k miles would be deductible; however, the best bet is that the corp reimburses those miles to the OP.

General expenses are different than specific expenses. For the most part all miles can be allocated to one or the other. The exception being evaluting properties. That would be expensed overall. Mileage to and from Home depot or such would be allocated to the appropriate property to which the items where purchased or of which most was purchased.

-Steven