I recently had an 8-day, 3300 mile trip by car (round trip) to inspect rental property and make a few repairs. I understand the milage deduction and maintenance expenses, but I am unsure of the Per Diem deduction associated with this rental property travel.

How do I compute the Per Diem deduction and what is the specific reference?

Thanks in advance.

8-days 3300 miles just to make a few repairs on the rental property? IRS may not like it. Make sure you did not combine vacations or other personal works with this rental inspection.

MukatA:

Actually, the IRS routinely accepts suchs trips twice a year, even if they are combined with vacations or trips with other, personal purposes.

Think about it! Is it not reasonable for you to go check on your property periodically to make sure that it is NOT being trashed by the tenants? The best way to do that is with a personal visit, and driving, while maybe not the most efficient way to travel, is an acceptable method of transportation.

BOTTOM LINE: Hawk-Driver's visit is a valid deduction on his Schedule E.

As for the per diem being used, he should access IRS Pub 1542 for the appropriate per diem rates for Meals and Incidental Expenses.

If the primary purpose of the trip is for personal purposes (such as vacation), then none of the travel costs are deductible. If the primary purpose of the trip is for business purposes, then the travel costs are deductible. Mixing personal activities with business activities may muddy the waters and cause the IRS to argue that the primary purpose of the trip was for personal purposes.