What deductions can I take if I have a rental?
Costs you incur to place the property in service, manage it and maintain it generally are deductible. Even if your rental property is temporarily vacant, the expenses are still deductible while the property is vacant and held out for rent.
Deductible expenses include, but are not limited to:
- Advertising
- Auto Expenses
- Travel (including air fare, car rental etc…)
- Cleaning and maintenance
- Commissions
- Depreciation
- Mortgage Interest
- Other Interest
- Homeowner association dues and condo fees
- Insurance premiums
- Real Estate taxes
- Other Taxes
- Management fees
- Pest control
- Professional fees
- Rental of equipment
- Rents you paid to others
- Repairs
- Supplies
- Trash removal fees
- Travel expenses
- Utilities
- Yard maintenance
All expenses you deduct must be ordinary and necessary, and not extravagant.
You can deduct the cost of travel to your rental property, if the primary purpose of the trip is to check on the property or perform tasks related to renting the property. If you mix business with pleasure, though, you’re required to allocate the travel costs between deductible business expenses and nondeductible personal costs. Be careful not to cheat yourself on the breakdown.