What Rental Expenses Can You Deduct as a Landlord?
All tax deduction should be regarded as a matter of legislative grace, meaning that they can be performed only if one or more of the tax laws explicitly allow it.
Usually, landlords can deduct three broad categories of rental expenses:
Tellus TIP:
In most cases, you are not required to indicate in the tax return form which tax law clause entitles you to take a specific deduction. However, if you are audited by the Internal Revenue Service (IRS), you will be required to provide a legal basis for each deduction you make. Therefore, if the IRS concludes that your deduction cannot be justified, it can refuse your deduction and charge you not only taxes but also penalties. In summary, read the law carefully before you decide to make a deduction.
- How Do You Make the Most Out of Landlord Tax Deductions?
- What Are Capital Expenses for Deduction Purposes?
- How Do You Deduct Mortgage and Other Loan Interests?
- How Do You Deduct Property Tax Payments?
- How Do You Deduct Home Office Expenses?
- What Tax Deductions Are Available for Airbnb Hosts?
- How Do Income Tax Deductions Work for Tenants?
- Is It Possible to Owe No Tax for a Particular Period?
- What Are Start-Up Expenses for Deduction Purposes?
- What Are Specific Examples of Start-Up Expenses Below $5,000?
- How Do You Deduct Start-Up Expenses Over $5,000?
- What Are Rental Operating Expenses Deductions?
- What Are Specific Examples for Deducting Operating Expenses?