Operating deductions
Common deductible expenses include mortgage interest, property taxes, insurance, property management, repairs and maintenance, utilities you pay, HOA dues, and advertising for tenants.
Depreciation
You also deduct depreciation each year on the building — a non-cash deduction that often shelters much of the cash flow. See the rental depreciation calculator.
Repairs vs. improvements
Repairs are deducted now; improvements must be capitalized and depreciated. Knowing the difference protects your deductions in an audit.
Frequently asked questions
Can landlords deduct mortgage interest?
Yes, mortgage interest on a rental is deductible, along with taxes, insurance, repairs, management, and depreciation.
Is depreciation a landlord deduction?
Yes — it's one of the largest, and it's non-cash.
Sources
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.