Guide for rental owners
What rental expenses can I deduct?
A plain-English checklist of what landlords can write off, and what they can't.
Almost every ordinary cost of owning and running a rental can lower your taxes. The trick is catching them all, because the ones you forget are money you hand over for no reason.
Expenses you can usually deduct
| Expense | Good to know |
|---|---|
| Mortgage interest | The interest, not the principal. Your lender's Form 1098 shows it. |
| Property taxes | For the rental, in the year you pay them. |
| Insurance | Landlord, liability, flood and earthquake policies. |
| Repairs and maintenance | Fixes that keep things working. Bigger upgrades are depreciated instead (see repair or improvement). |
| Utilities you pay | Water, trash, gas, electric, internet for the unit. |
| HOA dues | Regular dues. Special assessments for improvements are usually depreciated. |
| Property management and leasing fees | Including tenant placement fees. |
| Advertising | Listing sites, signs, photos. |
| Legal and professional fees | Attorneys, eviction costs, and the rental's share of tax prep. |
| Travel and mileage | Trips to manage or maintain the property (see mileage). |
| Supplies, cleaning, pest control, landscaping | The everyday costs of keeping it rentable. |
| Depreciation | The building and improvements, a little every year (see depreciation). |
| Loan costs and bank fees | Points and loan fees are usually spread over the loan's life. |
What you can't deduct
- Mortgage principal. Paying down the loan isn't an expense.
- Your own time and labor. You can deduct materials, but not what your hours are worth.
- Improvements, all at once. They're depreciated over time, unless a safe harbor lets you expense them.
- Personal use. If you also use the property yourself, only the rental share counts.
What a missed deduction costs
Forget $3,000 of small expenses over a year (a few plumber visits, supplies, mileage) → about $960 of tax you didn't need to pay, at a 32% rate.
Tethered Properties does this for you
Type what you paid for in everyday words, and Tethered Properties sorts it into the right tax category and shows what it saves you. Your year-end report adds it all up by Schedule E line.
This guide is general information for rental owners, not tax advice. Tax rules change and every situation is different; your CPA or tax advisor knows your full picture. Figures are estimates.