Question

Travel and transportation expenses related to rental property: A) Are not deductible.

B) Are deductible on Schedule A when there are records to substantiate the expense.

C) Are always deductible.

D) Require records to substantiate the expenses before reporting on Schedule E.

Answer 1

Option D - Require records to substantiate the expense before reporting on Schedule E

As per the IRS, you can deduct the travel and transportation expense if the primary purpose of the travel is to collect rental income or to manage, conserve or maintain the rental property.

Travelling expense cannot be deducted if the expense is met to improve the property.

The expense should be properly allocated between rental and non rental activities.

The expense need to be reported on Schedule E and require records to substantiate the same.

So Option D - Require records to substantiate the expense before reporting on Schedule E, is the correct option.