Question

Which of the following statements is TRUE regarding travel and transportation expenses related to rental property?
Only the standard mileage rate may be claimed for transportation expenses to look after a rental property.
Taxpayers should keep records of their mileage and travel expenses to substantiate the expenses before reporting on Schedule E (Form 1040).
Travel and transportation expenses are only deductible on the Schedule A (Form 1040) when there are records to substantiate the expenses.
Travel and transportation expenses are not allowed as a rental expense.

Answer 1

"Taxpayers should keep records of their mileage and travel expenses to substantiate the expenses before reporting on Schedule E (Form 1040)." — TRUE.

Brief notes:
- Travel and transportation for rental property are deductible on Schedule E when ordinary, necessary, and properly substantiated (see IRS Pub. 527 and Pub. 463).
- You may use either the standard mileage rate or actual car expenses (so the "only the standard mileage rate" statement is false).
- Travel expenses are not reported on Schedule A and are not categorically disallowed.