Tax Deductions Every Landlord Should Know About
Are You Missing Out on These Tax Deductions for Landlords?
Did you know that a lot of landlords miss out on money they could be saving at tax time, simply because they don’t know what they can actually deduct? If you own a rental property, you already know it comes with a lot of moving parts. You’re collecting rent, handling repairs, answering those late-night texts from tenants, juggling paperwork, and keeping everything running smoothly day after day. It’s a full-time job, even if it’s not your main one. So when tax season comes around, it’s only fair that you get a few wins and keep more of what you’ve worked hard for. That’s where tax deductions come in. These are the common expenses you can subtract from your rental income to lower how much you owe in taxes. In plain words, they help you save money. And if you’re not using them, you could be missing out on hundreds or even thousands of dollars. On this blog, we’ll walk through the tax deductions every landlord should know about. No confusing terms, no hard-to-follow rules, just simple, clear info to help you take full advantage of what’s yours. Let’s get into it.
1. Mortgage Interest
If you took out a loan to buy your rental property, chances are you’re paying interest on that loan every single month. The good news is that the interest portion of those payments can be deducted when you file your taxes. This is one of the biggest and most valuable deductions available to landlords, and it can really add up over the year. The more you pay in interest, the bigger the tax break. It’s a simple way to lower the income the government taxes you on. So don’t miss it. One easy way to keep track is by saving your year-end mortgage statement from your lender. That document shows exactly how much interest you paid for the year and makes things easier when it’s time to file.
2. Property Taxes
Property taxes are something every landlord has to deal with, and while writing that check might not feel great, there’s a silver lining. The amount you pay in property taxes each year is tax-deductible, which means you can subtract it from your rental income when doing your taxes. It doesn’t matter whether you’re paying a large amount or just a small portion. If it’s a required payment tied to your rental property, it counts. Don’t forget to include local or state taxes if they apply. Many landlords forget this one or don’t realize just how much it can help. When you’re organizing your tax documents, make sure property taxes are on the list.
3. Insurance Premiums
Landlord insurance is a must-have to protect your property, but it’s also a great way to save money on taxes. Any insurance policy you carry for your rental—whether it’s basic landlord coverage, extra protection for fire, flood, or storms, or even liability coverage—can be written off as a tax deduction. You’re already paying these premiums to keep your investment safe, so why not get something back from it? This is one of those expenses that’s easy to forget about, but it’s just as important as the big ones. If the insurance is tied to your rental business in any way, it likely qualifies. And if you’re not sure, it’s worth checking in with your tax advisor to be sure you’re not leaving anything out.
4. Depreciation
Depreciation can sound a little technical, but it’s actually one of the most useful tax benefits for landlords. The idea is simple. Even though your property might be in great shape, the IRS sees it as something that naturally wears down over time. So they let you deduct a portion of the building’s value each year over what they call its “useful life,” which is usually 27.5 years for residential rentals. It’s not something you pay for out of pocket, but it still helps you save money at tax time. Just keep in mind that you can only depreciate the building, not the land. This one can get a little detailed when it comes to calculating the numbers, so working with a tax pro is usually a smart move. But don’t skip it. Depreciation can be a huge help in lowering your taxable income year after year.
5. Other Deductions That Are Totally Worth Your Attention
There are lots of small, easy-to-miss expenses that you can also deduct. They might not seem like much on their own, but they really do add up. Here are a few:
- Repairs and maintenance: Did you fix a leak? Patch some holes? Paint a room? Those costs are deductible.
- Utilities: If you’re the one paying for water, gas, or electricity, that counts.
- Travel: If you’re driving to and from your rental for showings, cleanups, or repairs, keep track of your miles. That’s a write-off.
- Professional help: Paying a property manager? Using an accountant or lawyer? Those fees are deductible too.
- Advertising: Placed a rental ad online or printed signs? Yep, that counts.
If you’re spending money to run your rental, it’s probably a deduction.
Being a landlord means wearing a lot of hats, and by the time tax season rolls around, it’s easy to feel overwhelmed. But the truth is, you work hard to manage your property, keep things running, and deal with all the ups and downs that come with rental ownership, so you deserve to make the most of every dollar. Don’t let tax savings slip through the cracks just because you didn’t know what to look for. Take some time to review your expenses, organize your receipts, and write down anything you’ve paid throughout the year that helped keep your rental going.
Even the small stuff adds up. And if anything feels confusing or uncertain, there’s no harm in asking a tax expert for guidance. You’ve already invested your time, energy, and money into your property, so make sure you’re also taking advantage of the tax breaks that come with it. Every bit you save brings you closer to reaching your financial goals and growing your investment the smart way.
Need help keeping your rental business organized and stress-free? Let A-Line Realty handle the details so you can focus on what matters most. As your trusted property manager, we’re here to make things easier every step of the way.
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