Teso Property Management

Important Tax Deductions For Landlords To Know

Engaging in the rental property business is widespread across the United States, with landlords collectively investing millions annually. However, a significant number unknowingly overpay due to a lack of awareness regarding the specific taxes they incur. Many landlords find themselves in this situation primarily because they lack clarity on the types of taxes they are obligated to pay.

To optimize financial management in the realm of rental properties, it is crucial to grasp the permissible deductions available for tax purposes. Recognizing the significance of landlord tax deductions becomes pivotal in ensuring that property owners are well-informed about potential tax savings, contributing to more efficient and cost-effective management of their real estate investments.

Landlord Tax Deductions Should Know

Landlords are entitled to various tax deductions that can help minimize their taxable income and improve their overall financial position. Here are some common tax deductions for landlords:

Mortgage Interest

Interest paid on the mortgage for the rental property is typically deductible. This includes interest on loans used to acquire, improve, or refinance the property.

Property Depreciation

The cost of the property itself can be deducted over time through depreciation. This includes the building structure and any improvements made to the property.

Property Repairs and Maintenance

The cost of repairs and maintenance for the rental property is deductible. However, expenses that significantly improve the property (such as a major renovation) may need to be depreciated over time.


Landlords can deduct the cost of utilities paid for by the landlord, especially if they are covering utilities for common areas or if they are temporarily paying for utilities while the property is vacant.

Insurance Premiums

Premiums paid for landlord insurance, which typically covers property damage and liability, are deductible.

Travel Expenses

Landlords can deduct travel expenses related to the rental property, such as mileage for property-related trips or the cost of accommodations if the property is located far from the landlord’s residence.

  • Landlords deduction of actual specific expenses ( Vehicle repairs, upkeep, gasoline)
  • Landlords use of standard mileage rate ( IRS website have the full list of rates )

Professional & Legal Services

Tax deductions are also included in fees paid to the landlord’s real estate advisers, property management companies, accountants, lawyers, and other professionals. Landlords have the power to deduct these fees as long as the work is related to the property itself.

Things To Keep In Mind

The list at the top is considered to be the most important tax deductions for landlords in Ellenville to know. Aside from them, there are also minor ones such as;

  • Advertising is also deductible.
  • Rents landlords pay to others.
  • Relevant and important telephone calls on the property.
  • Expenses with regards to making the property available to senior citizens and PWDs.


Knowing all of these will help landlords to lessen their taxable incomes which then lessen their tax burden. As landlords, it is highly important to know tax deductions so they can reduce the chance of them spending more money and hiring an accountant.

Mastery of these tax deductions will help landlords maximize their profits for their rental properties without having any problems with the IRS. It will help landlords reduce the chance of going into the red being bankrupt.

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