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Posted by: Charles P Myrick CPA Posted on: Mar 01 2016 Posted in: small business, tax savings

The Best Tax Deductions for Landlords

You wouldn’t spend more than necessary on utilities for your rental property, would you? Then why would you spend more on taxes than you have to? Every year, landlords lose money because they overpay on their taxes, missing important and easy deductions that could put cash into their pockets.

If you are investing in rental property, read below to discover some of the top tax deductions for landlords you should claim this year.

1. Interest

Interest is probably the biggest tax deduction for your rental property. Any interest that you accumulate on money borrowed for an investment or business is typically deductible. Examples include:

  • Credit card interest accrued on goods or services used for your rental property
  • Personal loans for items used in your rental property
  • Mortgage interest payments to financial institutions that you use to acquire or maintain your rental property.

2. Repairs

Any repairs to your rental property—fixing leaks, repainting, plastering, fixing gutters, fixing floors, or replacing windows—are fully deductible if claimed during the same year that they are performed. Of course, the repairs must be necessary and reasonable.

3. Depreciation

The cost of buying or improving a rental property is deductible. However, you can’t just deduct it all at once. The IRS requires that you space the deduction out over the course of the property’s lifetime. This is called depreciation, and you should deduct the depreciation amount of your property every year.

4. Travel

Landlords can deduct any travel expense that is related to their rental property. This includes both local and long-distance travel, where landlords can deduct hotel bills, airfare, and meals, among other expenses. But a word of warning: the IRS monitors these types of deductions closely, so make sure you only claim deductions that are legitimate.

There’s no reason to lose money when you don’t need to. If you take these rental property deductions this year, you’ll save money, and your pocket will thank you.


Are you interested in learning more about income tax services in Washington DC or another location? We offer accounting services for the local Washington DC area, as well as virtual services that are available for people anywhere in the United States. Contact us to learn more: (202) 789-8898