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Mileage for Repair Work on Schedule E Rental

Level 2

Bottom line: Can TP deduct travel mileage for repair work on existing Schedule E Rental?

(No home office, 100% rental, no personal use.)


I've seen conflicting interpretations of this IRS Pub 527 section:

"You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. However, transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business." 

Some interpretations say no, the mileage is not deductible. 

Other interpretations say yes, the mileage is deductible. Example: 

"The second half of the IRS guidance above says that travel between your home and your rentals is a nondeductible commuting cost. The IRS doesn’t let you deduct your commute to your 9-5 job, and applies the same logic here. But does that really also apply to rental property owners?

You can deduct those miles if "you use your home as your principal place of business." The IRS defines the principal place of business in a few ways, including 'where the books are kept.' For the vast majority of real estate investors, that means your home is your principal place of business. If you do your books at home, then it qualifies, and you can deduct mileage starting from the time you leave your home."

What is the general consensus from the Community?

2 Comments 2

i deduct it. It isn't commuting because the rental isn't Trade or Business.

Level 15

I deduct clients mileage for rentals