Final answer:
Motor vehicle expenses for activities related to the operation of a rental property may generally be tax-deductible, depending on the jurisdiction's tax laws. Deductions must be prorated based on vehicle usage for rental activities and adequate records must be maintained. The deductibility is the same whether it's for one or multiple rental properties.
Step-by-step explanation:
Whether you can deduct motor vehicle expenses for a rental property depends on your specific tax situation and the tax laws in your jurisdiction. Generally, in many countries, if you use your motor vehicle to collect rent, manage, maintain, or do other tasks related to the operation of the rental property, such expenses may be deductible. These expenses are usually prorated based on the actual usage of the vehicle for rental activities versus personal use. For instance, if you use your car 40% of the time for your rental business and 60% for personal use, you may be able to deduct 40% of the vehicle expenses on your tax return. It's important to keep detailed records to substantiate these expenses. If you have only one rental property, the same guidelines apply as they would if you had multiple properties. However, the deductible expenses must be ordinary, necessary, and directly related to the rental activity.