Guide for rental owners
Can landlords deduct mileage to their rental?
Every trip to show a unit or meet a plumber can lower your taxes.
Yes. Driving to manage, maintain or collect rent for your rental property is generally deductible. Many owners never claim it because they don't keep a log, and the miles add up faster than you'd think.
Trips that usually count
- Showing a unit or meeting a prospective tenant
- Meeting a contractor, plumber or inspector
- Picking up supplies for the property
- Collecting rent or posting notices
- Checking on the property after a storm or a tenant moves out
Standard mileage or actual costs
Most owners use the IRS standard mileage rate: multiply your business miles by the rate for that year (the IRS publishes it each year, and it covers gas, wear and insurance). The other option is deducting a share of your car's actual costs, which takes more record keeping. Your CPA can tell you which works better for you.
Do the math
Your rental is 15 miles away and you go 3 times a month → 1,080 miles a year → roughly $800 of deductions at a typical standard rate. Money you'd otherwise just hand over.
The log the IRS expects
For each trip, write down the date, where you drove from and to, the miles, and why you went. A log made at the time is much stronger than one rebuilt at tax season.
Tethered Properties does this for you
Tethered Properties keeps that log for you: pick where you drove from and it works out the miles from the address. After the first trip, it's one tap.
This guide is general information for rental owners, not tax advice. Tax rules change and every situation is different; your CPA or tax advisor knows your full picture. Figures are estimates.