I had to use a rental car from the airport to get to my rental property which is out of state, and to run errands for supplies to fix my rental property. Is the cost to use a rental car considered a deductible travel expense, or is it a vehicle expense? I interpret a vehicle expense as for a personal vehicle, but I just wanted to double-check.
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Yes, the cost of the rental car can be deducted as a business expense if if it is ordinary and necessary to your rental business. It is recorded as travel expenses.
Yes, the cost of the rental car can be deducted as a business expense if if it is ordinary and necessary to your rental business. It is recorded as travel expenses.
Hello,
I'm a little confused because all the experts give different answers.
How can I deduct my expenses if I renti
a car directly from the owner and not from a company or not lease. Do I have to enter mileage because there are two categories: "Vehicle" where you can put mileage, and "Rental vehicles and equipment". I used both initially, but the vehicle category gave me one amount after I filled in the field, and the Car Rental category gave me a different result because I list the rental I pay for it weekly
You can deduct the cost of renting from an owner. The owner is responsible for reporting the income on their tax return. You should get a receipt.
Whether or not the owner reports the money does not affect whether it's deductible to you. As Tax Expert @MinhT said, you can deduct any ordinary and necessary expenses for maintaining your rental.
Enter the cost under Rental vehicles and equipment. You can't claim mileage because you don't own or lease the vehicle. Add any mileage charges to the cost of the rental.
To clarify, you will not enter anything in the Vehicle Expenses section for your car rental. You will enter it in the Rental Expenses section. After you get past the mortgage interest in the rental expenses section, you'll be able to enter it as a miscellaneous expense.
Thank you so mich. There are 2 categories, "Vehicle" and "Car and equipment rental", on which of these two categories indicate the total amount? One expert helped me, and she said that I can delete vehicle category and indicate everything in a "Car and equipment rental", so in the last category, there is no field for indicating mileage. If I can't deduct rent expenses using mileage, that is perfect, because I do not have exactly number of the mileage.
The VEHICLE expenses section is ONLY used for a car you own. If you rent a vehicle out of town it goes either under travel, rent equipment or at the end of the expenses list in a category you make up where you can also add the cost of gas & tolls.
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