Skip to Content

An Owner’s Guide to Rental Property Tax Deductions

Troy Rental Property Owner Doing Her TaxesOne of the primary advantages of owning Troy rental properties is that, come tax time, you can benefit from deductions that other taxpayers cannot. But to benefit from these deductions, you need to figure out what they are and how to have your numbers ready before you begin filling out your return. In this guide, we will identify the tax deductions that rental property owners can use and how they can help reduce your tax liability each year.

Common Expenses You Can Deduct

Possessing a strong knowledge of your property’s common expenses is imperative to optimizing your cash flows. It may also assist you at tax time so that you can deduct most of them on your return. Budget expenses that are also tax-deductible are:

  • Repairs and maintenance. Everything you expend to maintain the condition of your property is always a deductible expense. This comprises fees paid to service providers, contractors, and so on. Don’t forget that improvements – especially significant ones – are not deductible as expenses. Due to this, they should be amortized as capital improvements instead.
  • Insurance. Insurance premiums for your landlord insurance policy, including any fire, flood, or personal liability insurance, are deductible expenses.
  • Utilities. You can deduct utility payments on your tax return if you pay for any utility service, either water, garbage, electric, or gas. Utilities paid by your tenants are not deductible.
  • Advertising. Any money you spend to market your property and/or find a new tenant is a deductible amount. This includes if you subscribe to a web domain or website hosting, online ads, and professional fees for photography or video tours.

Additional Tax Deductions

In addition to common expenses, there are some other deductions that rental property owners may claim to help reduce their tax liability. These tax deductions include:

  • Mortgage interest. Any mortgage interest you pay on related loans is tax-deductible for investment properties. This is generally one of the most favorable deductions for rental property owners.
  • Depreciation. Another great deduction that rental property owners can take is depreciation. All properties tend to depreciate over time due to wear and tear. The benefit is that you can deduct a certain amount for this depreciation over the life of the property. You can also take depreciation on capital improvements, such as appliances, fences, and renovations.
  • Legal and professional fees. Just as you may deduct expenses paid for repair work or landscaping, you can also deduct costs given to attorneys or other professionals who furnish services related to the management of your rental property. Most costs associated with eviction, Troy property management, and tax preparation are also deductible.
  • Travel. Owning rental properties often includes a number of here and there travel, whether you reside in another state or only a few miles away. Those business-related miles will combine over the span of a year and are deductible on your tax return. Just keep a log of your travel miles and any other travel-related expenses.

It’s important to keep your property-related expenses organized and in one place if you like to take full advantage of all the deductions offered to you. And there’s no need to wait until the end of each year; you can start keeping track of your expenses immediately and add as you move ahead. Doing it this way can make your life easier every year when tax season comes around.


Another strategy to make tax time trouble-free is to hire Real Property Management Silverstone to keep account of your operational expenses. Besides professional property management, we pay attention to your property’s income and expenses and provide reports that can make tax time much simpler. Contact us online to learn more!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details