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An Owner’s Guide to Rental Property Tax Deductions

Glendale Rental Property Owner Doing Her TaxesAmong the most significant advantages of owning Glendale rental properties is that, come tax time, you can take advantage of deductions that other taxpayers cannot. Yet, to benefit from these deductions, you need to know what they are and how to have your numbers ready before you start filling out your return. In this guide, we will discuss the tax deductions that rental property owners can take and how they can help reduce your tax liability each year.

Common Expenses You Can Deduct

Having a robust comprehension of your property’s common expenses is crucial to optimizing your cash flows. It can also help you at tax time because you can deduct most of them on your return. Budget expenses that are also tax-deductible include:

  • Repairs and maintenance. Everything you spend to maintain the condition of your property is generally a deductible expense. This includes fees paid to service providers, contractors, and more. Remember that improvements – particularly substantial ones – are not deductible as expenses. In that case, they need to be amortized as capital improvements instead.
  • Insurance. Insurance premiums for your landlord insurance policy, including any fire, flood, or personal liability insurance, are deductible expenses.
  • Utilities. You can deduct utility payments on your tax return if you spend on any utility service, whether water, garbage, electric, or gas. Utilities paid by your tenants are not deductible.
  • Advertising. Any money you spend to market your property and/or find a new tenant is a deductible amount. This includes if you pay for a web domain or website hosting, online ads, and professional fees for photography or video tours.

Additional Tax Deductions

Besides common expenses, there are some other deductions that rental property owners can use to help reduce their tax liability. These tax deductions include:

  • Mortgage interest. Any mortgage interest you pay on related loans is tax-deductible for investment properties. This is always one of the most valuable deductions for rental property owners.
  • Depreciation. Another significant deduction that rental property owners may obtain is depreciation. All properties are apt to depreciate over time due to wear and tear. The reward is that you can deduct a certain amount for this depreciation over the life of the property. You can also get depreciation on capital improvements, such as appliances, fences, and renovations.
  • Legal and professional fees. Just like you can deduct expenses paid for repair work or landscaping, you can also deduct cash given to attorneys or other professionals who conduct services related to the management of your rental property. Most costs associated with eviction, Glendale property management, and tax preparation are also deductible.
  • Travel. Owning rental properties frequently demands several back-and-forth travels, whether you dwell in another state or only a few miles away. Those business-related miles may accumulate over a year and are deductible on your tax return. Just keep a log of your travel miles and any other travel-related expenses.

To take full advantage of all the deductions available to you, you have to keep your property-related expenses organized and in one place. And there’s no need to wait until the end of each year; you can start keeping track of your expenses immediately and add as you go along. Doing it this way can make your job more straightforward each year when tax season comes around.


Another tactic to make tax time easier is to engage with Real Property Management Vision to keep a check on your operational expenses. Other than professional property management, we monitor your property’s income and expenses and provide reports that may make tax time more straightforward. Contact us online to learn more!

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