Rental Tax Deductions
There are a number of deductions that a landlord can claim for the expenses that are incurred while renting out a property, or for the expenses incurred while preparing to rent out a property. However, these deductions are limited by a series of strict regulations that dictate which expenses can be deducted and how those expenses should be deducted on an individual's actual tax return.
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Improvements
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A landlord cannot immediately deduct the amount that she paid to improve her rental property, but she may claim a portion of the value of the improvement (depreciate) over several years.
Prerental/Vacancy
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A landlord can typically deduct the amount that he spent to manage or maintain the property while the property is empty or being prepared for a new occupant.
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Repairs
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A landlord is typically allowed to deduct the amount that she spent on repairs to maintain the value of the property, if those repairs do not increase the value or lifespan of the property.
Not for Profit
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A landlord may only deduct his rental expenses up to the amount of his rental income if the property was not rented to make a profit.
Other Expenses
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A landlord can typically deduct any advertising, cleaning, insurance, mortgage interest, taxes travel, transportation, and/or any other similar expenses related to leasing the property to another individual.
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