Mileage and Home Office Deductions for Landlords

Two commonly overlooked deductions for landlords are mileage related to managing rental properties and a home office deduction if you handle rental business from a dedicated space at home. Neither is automatic — both require meeting specific requirements and keeping records.

What counts as deductible mileage

Trips to a rental property for a legitimate business purpose — showing a vacant unit, meeting a contractor, handling a maintenance issue, conducting a move-in or move-out inspection — are generally deductible business mileage. Your regular personal commute doesn't count, since landlording isn't your commute destination in the traditional sense.

Standard mileage rate vs. actual expenses

You generally have a choice between deducting a standard per-mile rate (published annually by the IRS and updated each year, so check current guidance rather than relying on a prior year's number) or deducting actual vehicle expenses (gas, maintenance, depreciation) prorated for business use. Most landlords with modest mileage find the standard rate simpler to track.

Home office deduction basics

A home office deduction generally requires the space to be used regularly and exclusively for your rental business — a corner of a room used for other things too typically doesn't qualify. If you meet the requirement, you can deduct a portion of home expenses (a simplified square-footage-based method, or actual expenses prorated) related to that space.

Recordkeeping is what makes these defensible

A mileage log (date, purpose, destination, miles driven) and clear documentation of a dedicated home office space are what make these deductions defensible if ever questioned. Treat this as general guidance — a tax professional can confirm exactly what applies to your situation.