Write offs for a rental property

Before you buy an investment property it’s important to look at what tax situations will occur, what write-offs you gain with a rental property, and how will depreciation impact your taxable income from the rental.
Its tax season. Tax season is a good time to mention some of the basic deductible expenses (write-offs) on a rental property which include:

  • Professional fees paid to real estate agents for bringing a tenant and/or managing the property.
  • Tax preparation costs for the rental part of your taxes (Schedule E)
  • Repairs costs involved with keeping your property in good safe livable condition. (Repairs are treated different from improvements, repairs are deductible… improvements are depreciated over time.)
  • Mortgage interest, mortgage insurance premiums
  • Condo association fees and/or Home owners association fees.
  • Property taxes. And, an important side note here is that paying your property taxes quarterly will save you money. Look into this at your county tax collector if you haven’t done so already.

For more information on rental property deductions and depreciation look to these resources.

Publication 527, Residential Rental Property (Including Rental of Vacation Homes)
This publication discusses rental income and expenses (including depreciation) and explains how to report them on your return. It also covers casualty losses on rental property and the passive activity and at-risk rules.


Publication 946, How To Depreciate Property
This publication explains how you can recover the cost of business or income-producing property through deductions for depreciation.


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