Rental Property: What You Can Deduct & What to Keep

Rent is income; many costs are deductions

Mortgage interest, property tax, insurance, repairs, lawn care, utilities you pay, HOA dues, management and professional fees — the hard part isn’t the list, it’s keeping the papers that back it up. Keep the bill, not just the bank line.

The one small landlords get wrong most

Repair or improvement? A repair (fix the leak, patch the wall) is deducted this year. An improvement (new roof, new AC, remodeled kitchen) is spread over years. Write down what broke and what you did — that note settles it later.

Don’t sleep on depreciation

The building itself is one of the largest rental deductions, taken piece by piece over many years — and it rests entirely on the closing statement, the in-service date, and each improvement’s cost and date. The guide lists exactly which papers to keep.

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