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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Yes, the reimbursed expenses are added to the improvement costs. Document the travel costs in some way for your records (worksheet, receipt etc).
If you reimbursed your families members costs, then they would be added to the renovation costs and depreciated along with the project.
Thank you. I just reimbursed him in cash. Didn't think of getting a receipt. Should I get a receipt?
Additionally, some of the renovations are 'repairs' while others are 'improvements'. I assume the travel expenses would be accounted with improvements. Right?
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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