![]() All mileage is then reported on your Income Statement under the Admin & Other category. Finally, click “Save” to see your new mileage transaction appear in your tenant ledger. Stessa will automatically calculate the correct expense amount in dollars based on the IRS reimbursement rate for the year in which the miles were driven. ![]() Then click over to the “Mileage” tab and input the date and number of miles driven. To log mileage in Stessa, navigate to your Transactions page and create a new expense item by clicking the “+ Add” button. Use an automatic mileage tracking app like MileIQ in tandem with Stessa’s mileage expense feature to make sure you’re not missing any deductible miles. ![]() Remembering to log the trip each time you drive somewhere for business can be a challenge. An IRS-compliant mileage log contains the following: Both methods require you to keep an IRS-compliant mileage log. There are generally two ways you can deduct these trips: 1) using the actual expense method, or 2) the standard mileage deduction. city or locality) where you have an established rental business. If you established a home office, these miles are considered business miles and are tax deductible within your “tax home.” Your “tax home” is considered the geographic location (i.e. You might also travel to the bank, the hardware store, or to meet with your broker, your attorney, and so on. Most rental property owners routinely travel to and from rental properties located within driving distance. While most of your activities are ordinary and necessary, it is important to understand the various rules for deducting travel expenses. Necessary means it is helpful and appropriate for the trade or business. Ordinary means it is common and accepted within the trade or business. Simply put, for business travel it must be considered both “ordinary and necessary” to be tax-deductible. It’s also a big topic in our comprehensive Rental Property Tax Guide developed with the Real Estate CPA. And the list goes on! It’s no surprise then that many of these costs are tax deductions, but there are some nuances all real estate investors MUST familiarize themselves with in order to be as tax efficient as possible. As real estate investors, we are always on the move -viewing and managing properties, investor, broker, banking, and vendor meetings, research new markets, and even education.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |