"Shopping" trip deductible?

I own a rental property in Florida, and am thinking of buying another. It's about a day's drive from where I live. I am thinking of driving down in August to look at properties to buy. I would drive down with my wife, not necessarily making the trip 100% to look at property, probably doing some shopping along the way (she loves outlet malls).

Do I correctly assume that the costs of driving (rental car and gas), lodging, and meals (subject to 50% limit) would be deductible to the extent that the trip is for shopping for an investment property. For example, if we could get down and back in 3 days (a day down, a day to look at property, a day back) and we take 4 days because we do some shopping, the expenses for 3 days would be deductible but not the fourth?

The trip will have a legitimate business purpose. I plan to have financing arranged, my objective is to buy a second unit in the same complex I already own one in and I expect to look at all the units there that are available to be shown, and while the unexpected can happen, I will probably only go if I expect to make purchase offers on one or more units, although I may well make "low-ball" offers, not absurd ones, but aggressive.

I know that, for example, you can't go to Hawaii for a week, spend an afternoon looking at houses, and call it a "business trip." But under the circumstances described, could I deduct the expenses indicated?

Reply to
Hank Youngerman
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No.

No deduction. Capitalized into the cost of any propery you actually buy, and if none, then it is lost.

Reply to
D. Stussy

You have gotten good advice thus far. I would add that if the purpose of the trip was more related to the management of your current rental property, you would then have a better argument for deduction of your travel expenses. If the trip became primarily about management of your current property, than the cost of getting there and back would be deductible. If you are the landlord, then expenses related to your wife would be problematic.

Care should be taken to not use the current property as a validation of your trip, if management of that property is, in fact, not the primary purpose of the trip. I just wanted to give you another perspective to view.

Sincerely,

Bob Smith Tax Preparer Learning Systems LLC

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Reply to
bob

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