Whether you are a full-time investor or weekend landlord, your landlord vehicle expenses will often be one of the largest expenses you will have each year to offset your investing income for tax purposes. The IRS gives the taxpayer 2 options – itemize each individual vehicle expense (fuel, oil changes, repairs and maintenance, etc.) or elect to expense by mileage, which is an estimate of your vehicle expenses based on the distance you traveled for investment purposes that year.
While your normal everyday commute to and from your office (if you have one) is not tax deductible, you are allowed to deduct the mileage you travel to pick up and deliver items to and from your properties, attend meetings, view potential homes to purchase or perform other business-related activities. The standard mileage deduction changes with each new tax year and covers fuel, oil, automotive fluids, and wear and tear on your car; you may NOT write these expenses off separately.