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Employee
June 1, 2019
Solved

Can I deduct the same vehicle for multiple rental properties?

  • June 1, 2019
  • 1 reply
  • 0 views
Do I just pick one of my rental properties to apply the deductions to or do I split the amount between the two (ie vehicle insurance)?
Best answer by view2

When you allocate a single vehicle to multiply rental properties you have to arrive at an allocation of the vehicle expenses to each property before you begin your entries into the Turbotax program.Then use the same allocation for future year,, consistence treatment of expenses is a must in tax reporting.

However:In identifying  the  deductions  from  an  activity  that are disallowed, you do not need to account separately  for  a  deduction  unless  such  deduction may,  if  separately  taken  into  account,  result  in an income tax liability for any tax year different from that which would result were such deduction not taken into account separately.

If the vehicle  is combine on one property are separate the result is the same.

You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered adequate. This is because written evidence is more reliable than oral evidence alone. However, if you prepare a record on a computer, it is considered an adequate record. 

1 reply

view2Answer
Employee
June 1, 2019

When you allocate a single vehicle to multiply rental properties you have to arrive at an allocation of the vehicle expenses to each property before you begin your entries into the Turbotax program.Then use the same allocation for future year,, consistence treatment of expenses is a must in tax reporting.

However:In identifying  the  deductions  from  an  activity  that are disallowed, you do not need to account separately  for  a  deduction  unless  such  deduction may,  if  separately  taken  into  account,  result  in an income tax liability for any tax year different from that which would result were such deduction not taken into account separately.

If the vehicle  is combine on one property are separate the result is the same.

You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered adequate. This is because written evidence is more reliable than oral evidence alone. However, if you prepare a record on a computer, it is considered an adequate record. 

Employee
June 1, 2019
From the first paragraph, how do you allocate the vehicle for each property? Or is it better to just assign all the vehicle expense to one of the property and claim none for the other properties?