Billy Withers, EA, MT
Delivering personalized tax & accounting solutions
Published Mar 7, 2023
Deducting travel expenses can be a valuable tax strategy for real estate investors, as it can help reduce taxable income and save money on taxes. Here are some tips for deducting travel expenses as a real estate investor:
Keep Accurate Records
Keep detailed records of all your travel expenses, including receipts, invoices, and other documentation. This will help you keep track of your expenses and make it easier to claim deductions on your tax return.
Determine If Your Travel Is Deductible
The IRS allows you to deduct travel expenses that are ordinary and necessary for your real estate business. This includes travel to inspect and maintain your rental properties, attend meetings with real estate professionals, and other business-related travel.
Separate Personal & Business Travel
If you combine personal and business travel, you can only deduct the portion of the expenses that relate to your business. Keep a record of the days you spend on business activities, as well as the days you spend on personal activities.
Consider The Standard Mileage Rate
If you use your car for business travel, you can deduct the actual expenses or use the standard mileage rate. For 2023, the standard mileage rate is 65.5 cents per mile for business travel.
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Use A Business Credit Card
Using a separate credit card for your real estate business expenses can make it easier to track and deduct your travel expenses.
Consult With A Tax Professional
Deducting travel expenses can be complex, so it's a good idea to consult with a tax professional who can help you navigate the rules and maximize your deductions.
Remember to always keep accurate records, follow the IRS guidelines, and consult with a tax professional to ensure you are deducting your travel expenses properly.
What are your favorite tips that you use in your business?
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