Owning rental property comes with valuable tax benefits. Here's how to deduct every eligible expense and maximize your rental income returns.

Rental Property Tax Deductions

Rental income is taxable, but numerous deductions can significantly reduce your tax burden.

Deductible Rental Expenses

Operating Expenses

Mortgage interest
Property taxes
Property insurance
HOA fees
Repairs and maintenance
Property management fees
Advertising costs
Professional services (legal, accounting)

Depreciation

Residential rental property is depreciated over 27.5 years. This non-cash deduction can significantly reduce taxable rental income.

Example: A property with a $275,000 building value generates $10,000/year in depreciation deductions.

Travel Expenses

Travel to your rental property for management purposes is deductible (standard mileage rate).

Passive Activity Loss Rules

If your rental generates a loss, you may be able to deduct up to $25,000 against ordinary income if your AGI is under $100,000 (phases out between $100k-$150k).

Real Estate Professional Status

If you qualify as a real estate professional, rental losses are not subject to passive activity limitations.

Own rental property? Let our experts ensure you're capturing every available deduction.

Rental Property Tax Deductions: A Complete Guide