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Tax Deductions for a Rental Property Landlords Should Know

Tax Deductions for a Rental Property Landlords Should Know

Real estate is one of the most popular investments in the world, and for a good reason. Currently, there are around 11 million independent landlords in the US, so paying taxes is a familiar pain.

Luckily for you, you can benefit from their past mistakes and not miss out on important landlord tax deductions. Let's talk about the most important tax deductions for rental property and how to maximize your deductions this year!

Essential Tax Deductions For Rental Property

Rental properties are businesses, and every business is different. However, these are the most common deductions that landlords overlook at tax time!

Loan Interest

Most first-time landlords will pay a mortgage on their properties. While the mortgage itself is not tax-deductible, the interest on your payments is. Take a look at your mortgage payments from the previous years and determine how much you've spent on interest.

Also, if you've taken out construction loans or personal loans for renovations or improvements, interest rates on these can also be deducted. Check your credit card or loan statements to see how much you can save!

Insurance Premiums

Insurance premiums are a routine and essential business expense for landlords. This is one of the most commonly overlooked landlord tax deductions on this list, so add up your payments and deduct them this year!


Depreciation on your home's value is tax deductible. Take your home's estimated value and divide it by 27.5 (or use a depreciation calculator), which is the number of useful years for a rental property. That quotient will be your depreciation value for the year.

Service Fees

Maintenance, legal, and other service fees for your property are business expenses. If you've had any work done on your rental properties in the last year, save the receipts or invoices and remember to deduct them next year!

If you have any routine work done on your home by property managers, landscapers, or anyone else, these fees are also deductible.

How to Prepare For Rental Property Taxes

Developing the right tracking systems and financial habits will help you a lot when tax time comes around. Bookkeeping, saving receipts, and tracking revenue throughout the year is important, but managing these year-round can be time-consuming!

However, nothing is better than having the right help for your property. Hiring a professional property management company can help you balance your budget and ensure the highest deductions on your next tax bill. Not only that, but they can take all of the daily work out of your hands for only a small portion of your rent!

Get Help Today

Now that you know some of the most important tax deductions for rental property management, you can set yourself up for a maximum return. Being a landlord comes with a lot of work, but it doesn't have to if you have the right help!

Stay up to date with our latest real estate advice, and don't hesitate to contact us with any questions or for help with your property!