Can I expense my phone bill against my rental income? I live outside the country but have a phone primarily to make sure I get messages from tenants / building management

[JohnB5677]

If the phone is used for a business, or to manage rental properties it can be expensed based on the percentage of personal vs professional use.

[rahulv85]

Thanks, would 50% be a safe number? 

Additionally, can i expense my travel (flights, cabs etc) if I came to the U.S. to rent the property? And if I come back to the U.S. to check-in on the tenants, can I expense those travel expenses? What would be includes in such travel expenses (flights, cabs, other?)?

[JohnB5677]

The phone use is what it is.  It can be 100% if you have a second phone for personal calls.

• You should be filling a Schedule E for a rental property included in your tax return.
• Please see IRS Publication 463, for travel expenses

On page 9 it says

If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination.

[rahulv85]

Thank you. If I permanently live abroad and I came to the U.S. to convert my primary residence in the U.S. to a long-term rental, I am able to deduct the flight and cab (to / from airport) expenses incurred to get to the U.S. against that year rental income? 

@JohnB5677 

[JohnB5677]

Yes, provided it is for rental property business:

Listed below are the most common rental expenses.

• Advertising.
• Auto and travel expenses.
• Cleaning and maintenance.
• Commissions.
• Depreciation.
• Insurance.
• Interest (other).
• Legal and other professional fees.
• Local transportation expenses.
• Management fees.
• Mortgage interest paid to banks, etc.
• Points.
• Rental payments.
• Repairs.
• Taxes.
• Utilities.

Some of these expenses, as well as other less common ones, are discussed below.

Tips on rental real estate income, deductions and recordkeeping