Rental Property Tax Deductions

Rental Property Tax Deductions

As a landlord, you don’t want to overlook the rental property tax deductions that can help make a profit or minimize a loss. The IRS allows landlords to deduct expenses directly associated with the rental property that are necessary for its maintenance and management.

The following are examples of acceptable landlord tax deductions:

  • Employee and independent contractor wages for property managers, carpenters, electricians, plumbers, architects, landscapers, gardeners, roofers, carpet-layers, and painters.
  • Utilities (water, electric, etc.)
  • Property Taxes
  • Property Insurance Premiums
  • Mortgage Insurance Premiums
  • Necessary and reasonable repairs to the property
  • Travel costs incurred while doing business
  • Although a rare occurrence for the individual landlord, you may deduct 50 percent of meal and entertainment expenses incurred while doing business with potential clients or business associates. However, holiday parties and special events/meetings for employees are 100 percent deductible.