5 Surprising Landlord Tax Deductions

Posted by Hannah Lapin on Jun 3, 2020 9:00:00 AM

man in t-shirt sits at table looking at tablet and smiles

Although landlords are required by the IRS to report all rental income and to pay taxes on that income, there are many tax deductions landlords can take advantage of to lower their taxes. The key thing is to keep meticulous records and receipts of all your business-related expenses. For the landlords with records and strategies in place, the tax deductions can really add up. Here are five tax that might surprise you.

  1. Maintenance

    While many landlords might know they can deduct maintenance expenses, they might not know the extent of this deduction. You can deduct all maintenance expenses including
    • The batteries for smoke detectors
    • Light bulbs
    • Landscaping and tree trimming
    • Pest control
    • Cleaning expenses
    • HOA fees
  3. Repairs

    According to NOLO, given that your repairs are “ordinary, necessary, and reasonable in amount,” your rental property repairs are tax deductible. This can include:
    • Broken AC
    • Plumbing Costs
    • Leaks
    • Replacing Broken Windows
    • Plastering
    • Fixing gutters or floors
  5. Travel Expenses

    If you do not live near your rental and travel to check on it, according to Landlordology, you can deduct:
    • Airfare
    • Car rental and taxi
    • Hotel costs
    • Up to 50 percent of your meals during your travel time
    • Mileage or gas for business travel and vehicles
  7. Home Office and Operating Expenses

    For landlords who work from home, you can deduct the expenses of your home office from taxable income. You can further deduct the expenses of your home and office supplies including:
    • Pens, pencils, and paper
    • Computer Ink
    • Staples and stapler
  9. Utilities

    Even if your tenant reimburses you later (don’t forget to claim that as income), you can deduct your utilities including:
    • Electricity
    • Gas
    • Water
    • Sewer
    • Trash

Keep in mind, we always recommend consulting your counsel for help with your landlord income reporting and tax deductions. For more guidance on landlord taxes, see our Tax Page.

For more resources for real estate investors, visit our Resources Page.

To More Investor Resources

Related: 5 Notable Personal Tax Changes in the New Tax CodeBonus Depreciation and Section 179 of the New Tax Code

Topics: Taxes