15 Tax Deductions for Landlords

If you own an investment property, don't forget to seek for landlord tax deductions that can help you save money as tax season draws near. You might be able to deduct associated costs if you rent out property. Several expenses, such as mortgage and interest payments, insurance premiums, upkeep and repairs, office supplies, eviction-related expenditures, depreciation and losses, travel, expert services, and more, are tax deductible for landlords.

Keep in mind that the information in this article is only meant to be informative; judgments should not be based on it, nor should it be interpreted as legal advice. You are advised to seek legal counsel  and/or your CPA for guidance on your particular business activities and legal obligations. 

If you don't know the rules, it's difficult to win any game. Owning a rental property is similar. It can frequently feel like a game of chess where the pieces are always shifting as you balance meeting the requirements of your tenants, making timely insurance and mortgage payments, and settling up at tax time.

While having a profitable rental business is the goal, it's not always attainable. According to AdvisorSmith, 36% of rental businesses fail in the first five years, therefore you must take every possible step to increase profits and succeed.

Unfortunately, not many landlords are aware of the variety of tax breaks available to property owners and managers—opportunities that could help you save significantly. With many renters and landlords recovering from a difficult financial period, it's more important than ever to help protect your investment.

Here are 15  tax deductions that you may be eligible for. While some of these tax breaks are available to all homeowners, many are only available to renters. Check with your tax professional or CPA to see if any specific tax deduction applies to you and make the most of your return.

1. Mortgage interest: You can deduct the interest you pay on your rental property mortgage.

2. Property taxes: You can deduct the property taxes you pay on your rental property.

3. Insurance premiums: You can deduct the cost of insurance premiums for your rental property.

4. Repairs and maintenance: You can deduct the cost of repairs and maintenance for your rental property, including painting, fixing leaks, and replacing broken appliances.

5. Depreciation: You can deduct a portion of the cost of the rental property over time, based on its useful life.

6. Utilities: You can deduct the cost of utilities you pay for your rental property, such as electricity, gas, water, and sewer.

7. Legal and professional fees: You can deduct fees paid to attorneys, accountants, and property managers for services related to your rental property.

8. Advertising: You can deduct the cost of advertising your rental property, such as placing ads in newspapers or online.

9. Travel expenses: You can deduct travel expenses related to your rental property, such as mileage and lodging for property inspections and meetings with tenants.

10. Home office expenses: If you use a portion of your home for rental property management, you may be able to deduct a portion of your home office expenses, such as rent, utilities, and maintenance.

11. Property management fees: If you hire a property manager to handle your rental property, you can deduct their fees.

12. Pest control: You can deduct the cost of pest control services for your rental property.

13. Travel expenses for repairs: If you need to travel to your rental property to make repairs, you can deduct the cost of transportation and lodging.

14. Interest on credit cards: If you use a credit card to pay for expenses related to your rental property, you can deduct the interest on the credit card.

15. Casualty and theft losses: If your rental property experiences a loss due to a casualty or theft, you may be able to deduct the cost of the loss, subject to certain limitations.

In the game of rental property management, don’t let yourself get blocked into a corner. Increase your chance of success with expert advise and guidance.