You can assign your car expenses to one of your property, there is no need to separate expenses for car between properties. I suggest to take the most profitable rental property. By the end, all combined income/losses from your all properties will flow to your form 1040 as the whole amount from your Rental business.
There is two methods for write-off your car expenses :
- Standard business miles;
- Actual expenses. (Depreciation, gas, repairs and maintenance etc)
You can choose any, just keep in mind, that if you choose Actual expenses - you will not be able to switch to Standard business miles method in a future years. You have to follow this method for all future years for this car.
When you put your car on the balance of your business you have to calculate total cost for this car including future interest. Usually, you can find it in your purchase contract. After that, you will just depreciate your car and do not count payment for your car as an expense.
Thank you for participating in this event!
Olga S.
