What Tax Deductions Can Rental Property Owners Take?

By E-Renter Tenant Screening
Posted on March 1, 2013 under Landlord Tips, Legal | Be the First to Comment

First of all, let it be known that we do tenant screening—not tax returns. Therefore, please do not construe this post as tax advice. Get that from a professional. The following is general information that landlords might find useful.

The housing bubble turned lots of homeowners into landlords, when they couldn’t sell their properties and instead had to rent them out to tenants. These new landlords may not realize what veteran rental property owners know: that one of the advantages of being in the business is the opportunity to offset income by deducting certain expenses from their tax returns.

When you own rental property, you can generally deduct the following:

• Mortgage interest
• Depreciation
• Taxes
• Insurance
• Maintenance and upkeep
• Utilities paid by you
• Upgrades to rental units
• Advertising expenses
• Professional fees (tax advisor, lawyer, bookkeeper)
• Website expenses
• Local travel (including meeting with tenants, checking on units, traveling to hardware stores for parts, etc.)
• Long distance travel related to rental properties
• Cleaning expenses
• Painting, carpet replacement and other repairs done between tenants
• Home office expenses

Rental property offers other benefits, as well. Remember, one day the mortgage will be paid off and the income can help with your retirement, too!

Find a good tax advisor and make sure you get all the deductions you’re entitled to. Make your rental property work hard for you, and don’t pay more in taxes than is required.