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June 4, 2019
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If I deduct mileage expenses to maintain my rental property, do I need to allocate the property taxes for the car between my personal deductions and rental deductions?

  • June 4, 2019
  • 1 reply
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I live in a state that charges a personal property tax for a vehicle. Let's say that personal property tax is $1,000. Let's also say that I put 10,000 miles on the car in 2016, and 25% of the time I used the car travel back and forth to maintain my rental property (2,500 miles). Do I need to allocate that $1,000 personal property tax between my personal deductions and my rental deductions? So $250 of the personal property tax would be allocated to my rental deductions (because the car was used for the rental 25% of the time), with the remaining $750 allocated to my personal deductions? 

Best answer by KenH1

Yes, you are exactly right.  You can deduct personal property (excise) taxes if they are based on an underlying value.

You should allocate between personal and business.

1 reply

KenH1Answer
Employee
June 4, 2019

Yes, you are exactly right.  You can deduct personal property (excise) taxes if they are based on an underlying value.

You should allocate between personal and business.