Business Travel and side trips

[peteZ88]

The rules on claiming travel expenses to a rental property (Schedule E) when stopping on the way for a personal reason are still fuzzy to me considering the wording about side trips.   I have a short term rental (Schedule E) that is 300 miles away.  My mother's home is enroute and I often visit her on the way to or from the rental for a few days.  She is about 100 miles from my home.  

Scenario 1:  If stay at my Mom's for 3 days and at the rental for 4 days. Do I claim the total round trip miles between my home and the rental (600 miles)?

Scenario 2:  I stay at my Mom's for 4 days on the way to my rental property and then continue on to my rental for 3 days. Then travel directly home from the rental property.   Do I only claim the mileage from my Mom's to the rental property and back home (400 Miles)?

Scenario 3:  I stop at my Mom's in both directions for 1 night and stay at the rental for 3 nights.  Do I claim the full 600 mile round trip from home to the rental property?

Scenario 4:  I stop at my Mom's in both directions for 2 nights each after staying at the rental for 3 nights.  Do I only claim the 200 miles round trip between my Mom's and the rental property?

Thanks in advance for your help.

[DianeW777 · Accepted solution]

It can be confusing. The answers are listed for you below. Keep in mind the reason for the trip which is very important in each scenario.

1. It depends. The trip in this scenario would be considered as both personal and business. The miles from your Mom's to the rental and back home or back to your Mom's depending on whether the time at Mom's was all at once or in the middle of the rental activity.
2. Yes, it makes sense to eliminate the miles to your Mom's. The rest of the miles would be considered as rental business.
3. Yes. Since you did not use a hotel, the trip was for rental business which would allow you to include the full round trip miles.
4. Yes. There is more time spent for personal purposes than for rental purposes which would limit the number of miles you should use.

The key is to consider the time at the rental taking care of business as well as the mileage, and the main reason for the trip. The rules are trying to encompass and possible scenario where personal use miles are a factor and should not be used as a business expense. As long as you keep the records of time, reasons for the trip and always think of ordinary and necessary for your rental activity. Be sensible about the timing, as you have inquired about, and the personal use mileage.

[peteZ88]

For Scenario 1, the visit to my Mom's was at the beginning or end of the trip.

So even if I travel 200 miles to spend 10 days visiting my Mom before traveling 100 miles to my rental to do maintenance for 4 days, then travel 300 miles directly home from there, I can take the mileage starting at my Mom's to the rental plus the mileage from the rental back home (400 miles) .  Correct?

In this situation, the daily meal allowance would be 50% of 4 days? 

[RobertB4444]

Correct.  And yes!

@peteZ88