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Qualified expense for rental home maintenance

I do my own maintenance for my rental properties.   What are the areas that I can deduct?

Currently I'm logging everything.

- Supplies

- Replacement parts

- Mileage

What about my time spent?  Food while doing the repair?  

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1 Reply
NateTheGrEAt
Employee Tax Expert

Qualified expense for rental home maintenance

Supplies, parts, and mileage are all valid deductions. 

 

You cannot deduct the value of your time. (Think of it this way. If you pay a third party to do work, you can deduct what you pay them. That is income to them and a deduction to you. If you wanted to deduct the value of your time you would have to claim the same amount as income because you earned it doing the work. This would be a wash.)

 

You didn't mention where your rental properties are located, but in general business meals can only be deducted in one of two circumstances:

1. You are meeting with someone (such as a supplier, contractor, customer) for the meal and there is substantial discussion of business during the meal; or, 

2. You had to travel away from your "tax home" (meaning, the general area/city in which you regularly live or work) overnight or for long enough that you must stop and rest for several hours. 

 

For example, if you live in the Los Angeles suburbs and your rental properties are in Los Angeles, your tax home is the Los Angeles area. If you get a sandwich by yourself while working on the rental properties, you have not left your tax home overnight so the meal is not deductible. 

 

But if you lived in the Los Angeles suburbs and owned rental properties in San Francisco, several hours away, your entire travel to San Francisco to work on the rental properties could be deductible - not only mileage, but also meals, lodging or any other travel expenses (plane fare, car rental etc.) Here is a great IRS article about business travel expenses

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