Rental Property Tax Deductions: What is Allowed?
With the end of the year in sight, you may have a few questions regarding tax deductions on your property. Because your property is an investment, there are certain deductions you can take, but do you know which ones?
- Home repairs
- Loan interest paid
- Professional fees
- New refrigerator
Answer: All of the above! The reality is that there are many items you can check off as a tax deduction. Every year, millions of landlords pay more taxes on their rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property. Rental real estate provides more tax benefits than almost any other investment. Examples of some of the available tax deductions are: Interest paid on the home's mortgage, legal and professional fees such as your property management expense, property taxes, casualty losses, some major appliances, expenses paid to make your home more accessible to individuals with disabilities or the elderly, and in many cases home repairs and improvements. Of course with any tax deduction, oftentimes there are exceptions so make sure to discuss your rental property with a fully qualified tax professional.
Tell us your thoughts! Did you answer correctly?
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
Get the Neighborly App
In addition to Real Property Management's expert skills in managing your rental property, you can utilize Neighborly's other brands to maintain and enhance your home. Use the Neighborly App to get connected to local home service professionals. Download and receive offers only available on the App.
Depending on current health and safety regulations in your area, some of the services mentioned in this post may not be available. Neighborly service providers will follow the latest health and safety guidelines provided by the local and state governments. Please check with your local Neighborly service provider for details at the time you need service(s).