topic Turo rental car and mileage deduction in Investors & landlords

Turo rental car and mileage deduction

timebomb72 — Tue, 24 Feb 2026 06:43:04 GMT

I have a few cars I rent on Turo. I am under the impression that i can not deduct the mileage that renters drive. Is that correct? I always assumed that ibn order to claim the mileage I would need to actually drive the car vs. renters driving the miles.

Re: Turo rental car and mileage deduction

Critter-3 — Tue, 20 Jun 2023 21:09:46 GMT

If you have a "fleet" of cars you rent out to others to drive then you MUST use the actual expenses method and not the standard mileage rate.

Re: Turo rental car and mileage deduction

Mike9241 — Tue, 20 Jun 2023 23:42:10 GMT

how many different rental vehicles?

Re: Turo rental car and mileage deduction

timebomb72 — Tue, 20 Jun 2023 23:50:22 GMT

I've had up to 5 but does the number of cars matter if I only use them as rentals? I don't drive them personally. They are really only rentals that customers rent and drive. I didn't think there was a way for me to deduct the federal .625 per mile mileage deduction if I (or an employee) was not doing any of the driving. Am I wrong about that?

Re: Turo rental car and mileage deduction

timebomb72 — Tue, 20 Jun 2023 23:51:53 GMT

That was my assumption. I do not drive them personally. They are only rentals.

Re: Turo rental car and mileage deduction

Critter-3 — Wed, 21 Jun 2023 13:01:36 GMT

Since you don't drive any of them yourself then they are not considered a personal vehicle ... they are assets you rent out so you must use the actual expenses option even if you have less than the 5 mentioned ... https://www.irs.gov/publications/p463