Mileage deduction for one car used for multiple rentals question

Forum|Forum|2 years ago
March 4, 2024
1 reply
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I have been confused about how I should use turbotax to handle mileage deduction for one car used for multiple rentals.

For example:

the total miles used on the car in 2023 was 1,746 miles

Among them, 61 miles were used for rental property 1, and 241 miles were used for rental property 2.

In the rental 1 interview, I entered 1,746 for 'Total miles driven for all purpose', and 61 for 'miles driven for rental or royalty'

In the rental 2 interview, I entered 1,746 for 'Total miles driven for all purpose', and 241 for 'miles driven for rental and royalty'

Thus Turbotax calculated 3.49% (61/1746) business use for rent 1, and 13.8% business use for rent 2, but this is wrong, right? Because 1,746 miles include two business uses ( 61 and 241).

In this case, how should I handle it?

Best answer by SusanY1

Yes, as long as you aren't duplicating the miles in the numerator (in this case 61), the proper denominator is the total miles for the year driven on that vehicle for all purposes (including other business, personal, medical, and charitable.)

SusanY1

It appears that you've handled it correctly. The percentage of business use shown here is the percent of total miles used by each rental. These entries can be pretty complicated at times, but it appears you did it just right from the start!

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manbeingAuthor

Employee

@SusanY1

so even though the total miles driven (1,746 miles) include two rental properties business driven miles. To calculate the miles portion for the rental property 1, i should still use 61/1746 ?