Tax Benefits for Rental Properties

Property Management

As a landlord, you have plenty of great tax benefits that you should be taking advantage of.  As always, speak to your accountant regarding the details of deductions, but here are a few major advantages you should be aware of.  

1. Interest

Probably the largest tax deduction landlords can make is interest.  This can include mortgage interest payments on loans, and also interest on credit cards for purchases used for the rental property.  


2. Depreciation

When you buy a rental property, the actual cost of it is not fully deductible in the year that you purchased it.  That is why landlords take advantage of depreciation, which is deducting a portion of the cost of the property over several years.  There are several ways to do this, so it’s important to get help from your accountant when you first purchase your rental property.

3. Property Taxes

Property tax is a tax on real estate, and can usually be deducted.

4. Repairs

Repairs are another good deduction for landlords.  This includes repairing leaks, fixing clogged drains, painting, etc.  

5. Travel

Have you relocated but still come back to visit where your rental property is?  If you are traveling for your rental property, you can deduct airfare, hotel costs, meals, and other expenses.

6. Property Management and Legal Services

You can deduct the fees you pay for property management services, attorneys, accountants, and other professionals.  

Did you know that if you rent to your family or friends that you can potentially lose all of your tax deductions?  By using a property management company, you not only get to deduct the expenses of the company plus take advantage of all of the other landlord deductions, but you also ensure you’re able to avoid all the drama of renting to family and friends.