Tax Deductions for Landlords

By E-Renter Tenant Screening
Posted on April 29, 2009 under Landlord Tips | icon: commentBe the First to Comment

tax-deductions-on-tenant-screening-blogAre you thinking, “it’s a little late for tax advice? Well, read on, because this information is intended to make April 2010 a little easier to face by helping you save money.  Remember, we’re not tax professionals, so check with your tax advisor or a qualified tax planner for the details about what you can and cannot deduct. In general, track and keep good records of these expenses so you can deduct them from your rental income next year!

Interest: From mortgage interest on your rental property, to credit card interest on purchases made on behalf of the property, most interest is deductible. If you don’t already, consider acquiring a separate credit card for your rental property to make record keeping easier.

Advertising: All expenses to advertise your rental property are deductible. This includes newspaper and online rental ads, as well as website expenses.

Professional Fees: Legal and accounting expenses, as well as expenses for professional management, advertising and web design, or cleaning and maintenance help can be deducted.

Depreciation: You cannot deduct the full cost of the rental home in the year it is purchased. Instead, an equal portion is deducted each year over 27.5 years.

Travel: Local and long-distance travel related to your rental property is deductible. If you have a vehicle dedicated only to the rental property, then all expenses (gas, insurance, repairs, and maintenance) are deductible. If not, then keep good records for property management-related trips. Record the mileage for visits to your rental property to collect rent, inspect, or make repairs. For long-distance travel, track mileage or airfare, lodging, and meal expenses. To avoid any problems with the IRS, don’t claim deductions without the receipts to back them up!

Home Office: Expenses related to maintaining a home office, workshop, or storage areas to manage your rental property are deductible. There are minimum requirements to meet, so be sure to follow your tax professional’s guidelines. 

Theft or Casualty Losses: In case of theft, vandalism, or events like floods or fires, a portion of your loss may be tax deductible. Your insurance coverage will likely impact the amount you can deduct.

Insurance: Speaking of insurance, all premiums you pay to cover your property are deductible, including fire, theft, flood, and liability insurance.

Miscellaneous Expenses: Don’t forget to track expenses like office or household supplies, condo fees, utilities paid on behalf of your tenants, snow removal, landscaping, taxes, and repairs. 

Be sure to ask your tax professional about all of these deductions—but start saving those receipts and keeping good records now. You’ll be very glad you did at tax time in 2010!

For more landlord resources, including everything you need to know about tenant screening, turn to You’ll know that you have the best possible tenants when you prescreen tenants.

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