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October 12, 2021
Question

Travel expenses for rental properties

  • October 12, 2021
  • 1 reply
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My wife and I traveled out of state to do maintenance on our rental properties.  We also did maintenance on my mother-in-law's rental property (also in that out of state location).  I'm planning to deduct our travel expenses for our rental property work.  My mother-in-law is planning to deduct the cost of repair items, and capitalize the improvements made, but is there a way for her to deduct any of the time and travel expenses we spent working on her property?  Would she have to pay us for the actual labor?

1 reply

Employee
October 13, 2021

Yes, she could pay you and deduct that as an expense but then you would have to report the payment as income (and it would be ordinary income taxed at your marginal tax rate).

codad4xAuthor
October 13, 2021

Thank you!