[untzstdyme]

My wife and I bought a rental at the end of last year . And over the course of 8 months we remolded it . I drove to the rental from my work 5.1 miles . She drove to the rental from our home 7.35 miles . And we would then drive home in the two separate cars 7.35 miles home .Over the coarse of the 8 months we logged 3040 miles . This also included travel for supplies . Now the big question is . What of this is allowable as a deduction on our taxes . I've been told this amount of mileage would be an automatic red flag to the IRS which I am not fearful of since my taxes our clean
I haven't been able to find any regular info by web search . I hope someone familiar with this could help . I'm using Tubotax Premium so I'm trying to avoid seeing a tax guy

Thank you for you help Underpayment

[MukatA]

1. You cannot deduct the cost of improvement. If you make repairs as part of an extensive remodeling or restoration of your property, the whole job is improvement. Improvement adds to the value of property, prolongs its useful life, or adapts to new uses.

2. You have purchased the property. So any expense, before you start renting, may be considered capital expenses that is they will increase your cost basis.

However, you should get another opinion. Also refer Publication 17: Your Individual Income Tax, chapter 9, page 66.

[AtlantaTaxExpert]

If you maintained a daily mileage log, then claim the mileage.

While a bit high, I have submitted Schedules E with mileage amounts a LOT higher, and, in the cases where the mileage was challenged, the IRS accepted the mileage log at face value, especially if you could produce receipts for supplies bought where the date coincided.