Tax Deductions for Landlords: The Ultimate Guide

Tax Deductions for Landlords

Depreciation

Your largest and most powerful deduction. For residential rental property:

• Depreciate the building (not land) over 27.5 years
• A $300,000 building generates ~$10,909/year in depreciation
• This is a non-cash deduction — you keep the cash flow

Mortgage Interest

Fully deductible against rental income (no $750,000 cap that applies to personal residences).

Property Management Fees

Fees paid to a property management company are fully deductible.

Repairs vs. Improvements

• Repairs (e.g., fixing a broken window): Deductible in the current year
• Improvements (e.g., new roof): Must be capitalized and depreciated

Property Insurance

Fully deductible for all rental properties.

Professional Services

• Attorney fees for lease agreements
• CPA fees for rental accounting
• Property inspection fees

Advertising and Marketing

• Zillow listing fees, photography, signage

Travel

• Mileage to collect rent, perform inspections, or make repairs

Home Office

• If you manage your rentals from a dedicated home office

Passive Activity Losses

• Use losses against passive income
• Up to $25,000 against ordinary income (AGI < $100,000)

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