Real Estate · 8 min read
Landlord Tax Deduction Guide
Rental real estate is one of the most deduction-rich activities in the tax code. The catch: you need clean per-property books so depreciation and expenses tie to the right asset.
Operating expenses
- Mortgage interest (principal is not deductible)
- Property taxes and insurance
- Property management fees and leasing commissions
- Repairs and maintenance (vs. capitalized improvements)
- Utilities you pay, landscaping, pest control
- HOA dues
- Travel to manage the property
Depreciation — the biggest one
Residential rentals depreciate over 27.5 years; commercial over 39. A cost segregation study can accelerate depreciation on components like flooring, appliances, and land improvements.
