CH A P T E R 6
fee” of 3 percent of the cost of each reservation or an annual subscription fee. These fees are deductible. 9. Travel and transportation expenses. You can deduct expenses such as airfare, accommodations, mileage, meals, and other travel expenses when you travel overnight for business related to your VRP. This could include activities such as traveling to your rental property to do repairs or maintenance, education opportunities related to your rental, such as classes, seminars, conventions, or trade shows. You can also deduct mileage for travel to visit your property. 10. Home office. If you manage your rental business from a home office, you may be able to deduct expenses related to the office, including equipment, supplies, and a percentage of many of the costs of running your home. 52 Many tax deductions for your rental business could seem small. But they can really add up. Make sure to record your expenses as you go along. Keeping detailed records of any expenses related to your rental makes things much easier when it comes time to file your taxes. This is also important in case the IRS has questions in the future. Knowing what you can deduct and keeping good track of those expenses can help you take maximum advantage of tax savings on your rental property. Again, work with an accountant who is experienced in VRP, and many of these headaches will be handled for you.
6.5 Lean on Your Lender Your lender is your leverage into the VRP business. Very rarely will an investor be able to purchase the asset of their business with all cash. So, there are a couple ways to proceed. First of all, you can deal 52. https://www.avalara.com/mylodgetax/en/blog/2018/03/10-easily-overlooked-taxdeductions-airbnb-hosts-can-claim.html Accessed June 10, 2019. 163
