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Kobi0121
New Member

Partially owned rentals & auto deductions

I personally own several out of state rental homes with my unmarried partner 50/50. We use her car to go manage the rentals as needed.  We use a separate rental checking account to pay for gas, meals, and hotels when we go see the rentals.  I'm confused on how to deduct the expenses associated with her car ie: primarily gas . Turbo tax asks if I own the car, which I don't and they say I can't deduct the expenses since I don't own it.  But half of the money is being used to pay for gas is  mine.  What can I deduct for auto expenses in Schedule E if I don't own the car? 

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1 Reply
DianeW777
Expert Alumni

Partially owned rentals & auto deductions

The best way to handle this in your situation is to enter the gasoline as an expense.  You indicated that half of the money was paid by you for the gas. Use your actual gas expense you paid for the vehicle you do not own. 

 

On your partner's return they should use half the miles for their expense deduction since they only paid for half the gas as well.

 

If you entered a vehicle under the rental activity or activities that you do not own, then you must delete that.

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