Business travel - a tax deduction?

Question

I have two rental properties in California. Previously I lived
in one of them, and rented out the other. Earlier this year,
I moved to Texas and rented both of the Calif houses out.
The only mortgage is on the Calif property, I have none in Tx.

Now one of my renter's is moving. My question is: If I have to travel back to Calif to clean, run an add, sign off with a new renter or whatever, what -if any- of this can be used as a business expense on my taxes? And would the rent be considered California income, or is it all business income?

I appreciate the serious answers.

Answer 1

Transportation and lodging is fully deductible. 50% of meals is deductible. If the trip is for dual purpose you must apportion it for personal and business use based upon the proportion of time spent on each activity.

The income is taxable to CA.

You might wish to consider turning day-to-day operation over to a property manager. They'll typically charge 10% of the gross rents but they will handle all of the scat work for you. It's extremely difficult to manage property as an absentee landlord; trust me, I was one for many years! The first time that you have an emergency repair, especially on a holiday, you'll wish you had a local PM to handle it for you! And if you ever have to evict a tenant you'll tear your hair out trying to do it from a distance. The PM's fees are legitimate business expenses and are fully deductible.

Answer 2

You can write off the travel expenses to CA but only as long as the trip was only for checking on the rental properties, any pleasure part of the trip is not deductible. And for state, I would think that CA would tax you on the income from the rentals, so you'd probably have to file a non-resident tax return. Good thing that TX has no income tax at least.

Answer 3

No. The only way this would be counted as a medical deduction is if her primary care physician recommended her to go home to visit family. Otrherwise, its just a personal trip, regardless of the benefit.