Tax Deductions for Landlords

Owning rental property comes with a powerful tax advantage: the ability to deduct a wide range of expenses that reduce your taxable income. Yet many landlords leave money on the table every year by missing legitimate deductions.

The Big Three Deductions

1. Mortgage Interest

If you have a mortgage on your rental property, the interest you pay is fully deductible. This is often the largest deduction for landlords with financed properties. Make sure you’re tracking the interest portion of each payment separately from principal.

2. Property Taxes

Real estate taxes on your rental properties are deductible against rental income. This includes city, county, and state property taxes — but not special assessments for local improvements.

3. Repairs and Maintenance

The cost of repairs that keep your property in good working condition — fixing a leaky roof, repairing a broken furnace, or patching drywall — are fully deductible in the year they’re incurred. The key distinction: repairs maintain the property, while improvements add value and must be depreciated.

Often-Missed Deductions

• Travel expenses for visiting your rental properties
• Insurance premiums for landlord, liability, and flood policies
• Home office expenses if you manage properties from home
• Legal and professional fees for tax prep, legal advice, and accounting
• Advertising costs for finding tenants

How Deedix Helps

Deedix automatically maps each expense to the correct Schedule E line item. When tax time arrives, your deductions are already organized and ready for export — no scrambling through receipts required.