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Deductibility of rental renovation travel expenses

I have a rental property in another state being managed by a property management company. It required a lot of renovation when it became vacant last August after 5 years of rental. That renovation project required extensive day-to-day management, product selection/purchasing and decision making beyond what the management company could handle so I decided to take over the property management for a month and asked a retired family member for a favor to manage it for me. He had to travel out of state, rent a car and make living arrangements while there for about a month. Am I able to deduct the costs of air travel, car rental, room & board for this family member?

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1 Best answer

Accepted Solutions
PaulaM
Expert Alumni

Deductibility of rental renovation travel expenses

Yes, the reimbursed expenses are added to the improvement costs. Document the travel costs in some way for your records (worksheet, receipt etc).

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4 Replies
PaulaM
Expert Alumni

Deductibility of rental renovation travel expenses

If you reimbursed your families members costs, then they would be added to the renovation costs and depreciated along with the project.

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Deductibility of rental renovation travel expenses

Thank you. I just reimbursed him in cash. Didn't think of getting a receipt. Should I get a receipt?

Deductibility of rental renovation travel expenses

Additionally, some of the renovations are 'repairs' while others are 'improvements'. I assume the travel expenses would be accounted with improvements. Right?

PaulaM
Expert Alumni

Deductibility of rental renovation travel expenses

Yes, the reimbursed expenses are added to the improvement costs. Document the travel costs in some way for your records (worksheet, receipt etc).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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