Rental Property Tax Deductions: The Complete List for Landlords

Rental property ownership comes with one of the most generous sets of tax deductions in the U.S. tax code. The IRS allows landlords to deduct virtually every legitimate expense related to managing, maintaining, and financing a rental property — reducing taxable rental income significantly, sometimes to zero or below.

The Complete List of Rental Property Tax Deductions

• Mortgage interest — The interest portion of your mortgage payment is fully deductible
• Property taxes — Fully deductible on rentals (no $10,000 SALT cap that applies to primary residences)
• Depreciation — Typically the largest deduction; residential property depreciates over 27.5 years, commercial over 39 years
• Repairs and maintenance — Fixing a leaky faucet, repainting, patching a roof — all deductible in the year paid
• Property management fees — Typically 8–12% of monthly rent; fully deductible
• Insurance premiums — Landlord insurance on the rental property
• Utilities — Water, sewer, trash, gas, electric if you pay them
• Professional services — Attorney, CPA fees for rental-related work
• Advertising — Zillow listing fees, photography, signage
• Travel expenses — Driving to the property for inspections or maintenance (67 cents/mile in 2024)
• HOA fees and condo dues — Fully deductible for rental properties
• Supplies — Cleaning supplies, tools, small appliances under $2,500
• Pest control, lawn care, snow removal — All deductible maintenance expenses
• Eviction costs — Legal costs and court fees related to evicting a tenant

The Depreciation Deep Dive

Depreciation deserves extra attention. You must depreciate rental property — the IRS requires it. If you don’t claim it, you still owe depreciation recapture tax at sale based on what you should have taken. Land is not depreciable. A cost segregation study can dramatically front-load your depreciation. See our cost segregation guide for details.

What Doesn’t Qualify

• Land — never depreciable
• Personal expenses or the personal use portion of mixed-use expenses
• Capital improvements — must be depreciated over time, not deducted immediately
• Principal payments — only the interest portion of your mortgage is deductible

Keep receipts and records for every deduction. A dedicated business bank account and credit card for rental expenses makes recordkeeping straightforward and audit-proof.