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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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Lev! You had helped me last year with some rental property

Customer Question

Hi Lev! You had helped me last year with some rental property tax questions and I am in a bind again! Few questions: how do I deduct/report vehicle mileage properly on 4562. Also how do I amortize fees connected with my rental mortgage loan?
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.

If you used standard mileage rates to deduct car expenses a part of that amount is attributable to depreciation.

Specifically - see page 25 - Rate of Depreciation Allowed in Standard Mileage Rate

https://www.irs.gov/pub/irs-pdf/p463.pdf

Year(s) Depreciation Rate per Mile
2015 $.24
2014 .22
2012–2013 .23
2011 .22
2010 .23
2008–2009 .21
2007 .19
2005–2006 .17
2003–2004 .16
2001–2002 .15
2000 .14

So - you will need miles the car was used for business every year and will calculate depreciation deduction.

However - if you are using standard mileage rate to deduct your car expenses - you would not report depreciation on form 4562 - because depreciation portion is already included into the standard mileage rate.

Customer: replied 8 months ago.

Hi Lev,

Thank you for the response! I have only taken the standard mileage rate in the past years and now I read something in a publication which led me to believe I should be also filling out the info on form 4562 Part IV for the vehicle used for the activity.

My boyfriend and I have each a few single family rental homes, however this is not our full time business, and therefore we don't use our vehicles for this purpose >50%. That's why I wasn't sure about the form 4562 and I never wanted to do any sorts of claim on vehicle depreciation.

Also I was under the impression that every time I go to the rental home, (from my home) in order for me to show the house to prospective tenant, or to sign lease documents or to go there due to maintenance issue, or go to the store if I needed supplies and go back to the home...all these are instances where I had recorded the miles I had driven...and this is what I am using the standard mileage rate and entering the amount on Sch E, line 6. Is that correct? Or is that considered commuting and is not to be used as a deduction?

Thank you in advance,

Lubena :)