14 Rental Property Tax Deductions

If you own a rental property, did you know that there are 14 tax deductions that you can take advantage of? 

  1. Advertising - any tools and expenses related to marketing your rental properties (listing fees, printing, online advertising, etc)
  2. Auto & Travel - If you use your car strictly for work-related purposes, you can write off all costs associated with operating and maintaining it. If your car use is mixed between business and personal reasons, you can only deduct costs related to the vehicle's business usage. You can claim the mileage you use for business driving, either by deducting the actual miles traveled for business or by using the standard mileage deduction of $0.56 per mile driven.
  3. Cleaning & Maintenance - Cleaning and basic maintenance of the property (landscaping, cleaning, etc)
  4. Commissions - Agent or wholesaler commissions used to purchase or rent property
  5. Depreciation - Depreciation is the reduction in an asset's value over time due to its use, wear, and tear. Most U.S. residential rental property is depreciated at a rate of 3.636% each year for 27.5 years. Commercial buildings and improvements generally depreciate over 39 years.
  6. HOA Fees - Fees for properties, condos, or apartments with Home Owners Associations or management groups
  7. Insurance - Property Insurance (including additional flood, wind, or earthquake coverage)
  8. Interest - Mortgage loan interest 
  9. Legal Fees - Eviction services, business legal document preparation and review, etc
  10. Management Fees - Property management fees
  11. Points - Mortgage Points--lump sum fees or interest paid at the beginning of a mortgage loan
  12. Repairs - Minor repairs (not capital improvements that would add additional value to the property). Examples are minor plumbing and electrical repairs. 
  13. Taxes - Property or sewer taxes paid annually 
  14. Utilities - Water, sewer, gas, electrical charges

Download our FREE Checklist and send it to your accountant to ensure you maximize your tax deductions this year. 

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