✅ Rental Property Tax Deductions

Maximize your rental property ROI with these commonly allowed tax deductions. 

(Note: While mortgage payments aren't fully deductible, specific parts like interest and taxes are—see below.)

🏠 Ownership & Financing Costs

• Mortgage Interest – Only the interest portion of your mortgage payment (not the principal).

• Points Paid on a Loan – If amortized over the life of the loan.

• Loan Origination Fees – Sometimes deductible over time.

• Mortgage Insurance Premiums (PMI) – Deductible subject to income phase-outs.

• Property Taxes – Fully deductible as an operating expense.

• Depreciation – Annual deduction for wear and tear on the building (not land).

• Interest on Credit Lines – If used for rental-related expenses.
  
  

🔧 Maintenance & Repairs

• Repairs – Fixing leaky faucets, repainting, broken windows, etc.

• Maintenance – Lawn care, pest control, HVAC servicing, etc.

• Supplies – Light bulbs, batteries for smoke detectors, filters, etc.

• Cleaning Costs – Professional services or cleaning supplies.
  
  

💼 Professional Services

• Property Management Fees

• Legal Fees – Related to leases, evictions, or disputes.

• Tax Preparation Fees – For the portion related to the rental property.

• Accounting Services – Related to rental income and expenses.

• Real Estate Agent Fees – For finding tenants (not for buying property).
  
  

🚗 Travel & Transportation

• Mileage – Trips to the property for inspections, repairs, etc. (keep a log!)

• Parking Fees & Tolls

• Airfare & Lodging – For long-distance property management trips.

🛠 Capital Improvements (Not Deductible Immediately, But Depreciable)

• Roof replacement

• Kitchen or bathroom remodels

• New appliances (if over a certain cost threshold)

• HVAC system upgrades

These must be depreciated over 5, 7, 15, or 27.5 years depending on the asset type.

📲 Utilities & Operational Costs

• Utilities Paid by Landlord – Water, gas, electricity, trash, internet, etc.

• HOA Dues

• Security System Monitoring

• Tenant Screening Fees

• Advertising for Tenants

• Software & Apps – Property management tools, subscription services.
  
  

🛑 Not Deductible

• Mortgage principal payments

• Personal use portion of property expenses

• Improvements (must be depreciated)

• Vacant property costs unless actively seeking a tenant