As a landlord, tax deductions are the most direct way to keep more of what you earn from your rental. And you don't have to raise the rent or cut corners on maintenance to do it.
Say you spend $1,000 on mortgage interest. Mortgage interest is tax-deductible. So that $1,000 comes off your rental income before the IRS calculates what you owe.
That's exactly why getting your deductions right matters so much. Every deduction you miss is money you already spent. And now you're paying tax on it too.
There's a full list of 25 deductions you can claim. But most landlords stop after the obvious ones: mortgage interest, property taxes, insurance.
In this guide, you'll learn about all 25 deductions. Each one comes with a real dollar example.
Whether you own a single-family rental, a duplex, or a small portfolio, every item on this list applies to you.
The complete landlord tax deductions list
| Deduction | Where reported | Commonly missed? |
|---|---|---|
| Mortgage interest | Schedule E, Line 12 | No |
| Property taxes | Schedule E, Line 16 | No |
| Landlord insurance | Schedule E, Line 9 | No |
| Repairs | Schedule E, Line 14 | No |
| Depreciation | Schedule E, Line 18 | Yes (often underreported) |
| Appliance and improvement depreciation | Schedule E, Line 18 | Yes |
| Property management fees | Schedule E, Line 11 | No |
| Advertising | Schedule E, Line 5 | No |
| Utilities paid by landlord | Schedule E, Line 17 | No |
| Professional fees (CPA, attorney) | Schedule E, Line 10 | Partial (legal fees often missed) |
| Lawn care and landscaping | Schedule E, Line 7 (Cleaning and maintenance) | Yes |
| Pest control | Schedule E, Line 7 (Cleaning and maintenance) | Yes |
| Snow removal | Schedule E, Line 7 (Cleaning and maintenance) | Yes |
| Cleaning services | Schedule E, Line 7 (Cleaning and maintenance) | Yes |
| HOA fees | Schedule E, Line 19 (Other) | Sometimes |
| Travel and transportation | Schedule E, Line 6 | Yes |
| Home office | Schedule E, Line 19 (Other)—trade-or-business test applies | Yes (and contested) |
| Mortgage origination points | Schedule E, Line 12 | Yes |
| Accounting software and tools | Schedule E, Line 19 (Other) | Yes |
| Cell phone (business portion) | Schedule E, Line 19 (Other) | Yes |
| Casualty and theft losses | Form 4684 | Yes |
| Real estate education | Schedule E, Line 19 (Other) | Yes |
| Safe deposit box and storage | Schedule E, Line 19 (Other) | Yes |
| Bank and merchant fees | Schedule E, Line 19 (Other) | Yes |
| Vacancy-period expenses | Varies (each expense's normal line) | Yes |
The 25 deductions you can claim on your rental
1. Mortgage interest: Schedule E, Line 12
Mortgage interest on your rental is fully deductible. If you pay one dollar in interest, that dollar comes off your taxable rental income.
It's almost always your single largest deduction. That's especially true in the early years of a loan, when most of your payment is interest rather than principal.
Example: Say you have a $200,000 loan at 7% interest.
Loan amount: $200,000 Interest rate: 7% Approximate year-one interest: $13,900
That entire amount comes off your taxable rental income, dollar for dollar.
Your lender sends you Form 1098 each year. It shows the total interest you paid.
Report that amount on Schedule E, Line 12.
2. Property taxes: Schedule E, Line 16
Property taxes on your rental are fully deductible as a rental expense.
Most landlords don't realize something important. The SALT cap limits how much state and local tax you can deduct on your personal home. But it doesn't touch your rental at all.
That cap was raised to $40,000 for most filers through 2029. That's up from the old $10,000 cap, under 2025 tax legislation.
Either way, your rental property taxes were never subject to that cap in the first place.
Example: Say you own a $250,000 rental in Indianapolis.
You pay $2,800 in property taxes a year.
That $2,800 comes straight off your rental income before the IRS calculates what you owe.
3. Landlord insurance: Schedule E, Line 9
Your landlord insurance premiums are fully deductible for the period they cover. This is also called dwelling fire insurance or rental property insurance.
That includes:
- The annual premium on the property itself
- Any umbrella liability coverage you carry specifically for the rental
Example: Say you pay $1,200/year for a landlord policy and $400/year for a rental umbrella.
Landlord policy: $1,200/year
Rental umbrella: +$400/year
------
Total deductible: $1,600/year
That's $1,600 you can deduct off your rental income.
4. Repairs: Schedule E, Line 14
Ordinary repairs that keep your rental in working condition are fully deductible. You deduct them in the year you pay for them. For example:
- Fixing a broken window
- Patching a leaky pipe
- Repainting scuffed walls
- Replacing a broken appliance
Example: Say you spent $4,200 on repairs last year:
Water heater repair: $850
Roof repair after a storm: $1,600
Flooring replacement (1 bedroom): $1,750
------
Total deductible repairs: $4,200
All $4,200 is deductible as a repair expense.
Note: Know the difference between a repair and an improvement. A repair restores your property to its previous condition, and you deduct it right away.
An improvement adds new value, and you depreciate it over time instead.
Reporting tip:
- On Schedule E, "Repairs" (Line 14) and "Cleaning and maintenance" (Line 7) are two different categories.
- A one-off fix, like that water heater repair, goes on Line 14.
- Recurring upkeep, like lawn care, pest control, snow removal, and cleaning services, goes on Line 7, not Line 14.
5. Depreciation: Schedule E, Line 18
Depreciation is typically your second-largest deduction after mortgage interest.
The IRS lets you deduct the cost of your rental building over 27.5 years. You deduct an equal amount each year.
Example: Say you buy a single-family rental for $250,000.
Purchase price: $250,000
Land value (not depreciable): -$30,000
------
Depreciable building value: $220,000
÷ 27.5 years
------
Annual depreciation deduction: $8,000
That $8,000 annual deduction costs you nothing out of pocket.
Important: If you've owned a property for a few years and haven't been claiming depreciation, you're leaving thousands on the table every single year.
The deduction exists whether you claim it or not. And when you eventually sell, the IRS treats you as if you did.
6. Appliance and improvement depreciation: Schedule E, Line 18
Appliances like refrigerators, washers, and stoves are 5-year property.
Structural improvements like a new roof, an HVAC system, or a kitchen renovation are 27.5-year property, same as the building itself.
Neither one gets deducted all at once by default.
Say you buy an appliance, like a new refrigerator, after January 19, 2025. You can often deduct the full cost that same year, instead of spreading it out over 5 years.
Some outdoor improvements, like new fencing, may qualify for this too. But big parts of the building, like the roof or the walls, generally still follow the old 27.5-year rule.
Everyone's tax situation is different, so talk to a CPA before you decide which way to go.
Example: Say you install a new HVAC system for $6,400 and buy a new $1,200 refrigerator.
HVAC system (structural, 27.5-year property): $6,400 ÷ 27.5 years = $233/year Refrigerator (5-year property): $1,200 ÷ 5 years = $240/year Or, with bonus depreciation: $1,200 deducted in year one
The HVAC system has to follow the 27.5-year building schedule. The refrigerator, as 5-year property, is a candidate for full first-year expensing under bonus depreciation.
Cost segregation: If you own higher-value properties, a cost segregation study can reclassify parts of your building into shorter depreciation categories. That speeds up your deductions.
Many CPAs consider this worthwhile mainly above roughly $500,000 in property value. But that's a rule of thumb, not an IRS threshold.
7. Property management fees: Schedule E, Line 11
Fees you pay a property management company are fully deductible. You deduct them the year you pay them. That covers:
- The monthly management fee
- Leasing fees
- Any administrative charges from the manager
Example: Say your property manager charges 8% of gross rent on a $2,100/month rental.
Monthly rent: $2,100
Management fee (8%): $168/month
× 12 months
------
Annual deductible fee: $2,016
8. Advertising: Schedule E, Line 5
Whatever you spend advertising your rental is deductible. That includes Zillow listing fees, paid Craigslist posts, yard signs, and even the photographer you hire for the listing.
Example: Say you pay for a Zillow premium listing, professional photography, and a yard sign.
Zillow premium listing: $299
Professional photography: $150
Yard sign: $45
------
Total deductible: $494
9. Utilities you pay: Schedule E, Line 17
Any utilities you cover for the rental are deductible. You'll run into this most often with:
- Multi-unit properties, where you pay water, trash, or common-area electric
- Single-family rentals, when you keep utilities on during a vacancy
Example: Say you own a duplex and pay $1,800/year in water and trash that isn't separately metered.
That's $1,800 you can deduct as a rental expense.
10. Professional fees: Schedule E, Line 10
Fees you pay a CPA to prepare your rental returns are deductible. So are fees you pay an attorney to draft leases.
Example: Say you pay a CPA to prepare your Schedule E and an attorney to update your lease.
CPA prep (Schedule E): $480
Attorney (lease update): $350
------
Total deductible: $830
11. Lawn care and landscaping: Schedule E, Line 7
Any routine ground maintenance you pay for, like mowing, landscaping, and fertilizing, is deductible.
Example: Say your lawn service charges $85/visit, 26 times a year.
$85 per visit × 26 visits/year = $2,210
If your lease requires you to maintain the yard, all $2,210 is deductible.
12. Pest control: Schedule E, Line 7
Pest control treatments at your rental are deductible.
Example: Say you pay $120 for quarterly pest control.
$120 per quarter × 4 quarters/year = $480
That comes straight off your taxable rental income.
13. Snow removal: Schedule E, Line 7
Any snow removal at your rental, like plowing or salting, is deductible.
Example: Say you're in the Midwest, paying $65 per snow event. A typical winter brings 14 events.
$65 per snow event × 14 events/winter = $910
That's fully deductible.
14. Cleaning services: Schedule E, Line 7
Rental cleaning is deductible. That includes professional cleaning between tenants, common-area cleaning in a multi-unit, and cleaning during a vacancy.
Example: Say you pay $350 for a move-out cleaning after each tenant leaves.
$350 per move-out cleaning × 2 turnovers/year = $700
That's $700 in deductible cleaning costs.
15. HOA fees: Schedule E, Line 19 (Other)
If your rental sits in an HOA or condo association, your HOA fees are fully deductible.
Example: Say your condo rental costs you $325/month in HOA fees.
$325/month × 12 months = $3,900/year
That full amount is deductible, typically on Line 19 under Other.
16. Travel and mileage: Schedule E, Line 6
Driving to your rental for legitimate business reasons is deductible. That includes showing the property, making repairs, meeting tenants, or running an inspection.
You can use either the standard mileage rate or your actual vehicle expenses.
Example: Say you drive 1,200 miles managing a rental property.
1,200 miles × $0.70/mile (2025 rate) = $840
The rate moves every year, and it can even change mid-year. For 2026, it's 72.5 cents per mile through June, and 76 cents per mile from July on.
Use whatever rate was in effect on the day you drove, not last year's number.
Keep a mileage log with the date, destination, purpose, and miles for every trip. The IRS wants to see this if you're ever audited. A simple log on your phone or a spreadsheet is enough.
17. Home office: Schedule E, Line 19 (Other)
If you can show real continuity, regularity, and active management, you may have a defensible position to claim this deduction. But it's not an automatic yes.
Even if it applies to you, the deduction is limited. It generally can't create or increase a rental loss beyond what your mortgage interest and property taxes already cover.
So if you're self-managing a modestly profitable rental, the real value here is often smaller than the square-footage math below suggests.
Example: Say you use a 200-square-foot room in a 2,000-square-foot home exclusively to manage two rental properties.
Office space: 200 sq ft
Total home: 2,000 sq ft
Office share: 10%
Annual home expenses: $24,000
× 10%
------
Calculated home office amount: $2,400/year
Whether you can actually use that full amount depends on two things: whether your rental activity qualifies as a trade or business, and whether your rental turns enough profit to absorb it.
The space itself still has to be used exclusively for business, no matter what. A desk in your guest bedroom doesn't qualify.
Home office is one of the most commonly challenged deductions on a landlord's return, so talk to a CPA before you claim this one.
18. Mortgage origination points: Schedule E, Line 12
Origination points you pay on a rental property loan are deductible, but they must be amortized over the life of the loan. You can't deduct them in full the first year.
Example: Say you paid $3,000 in origination points on a 30-year rental mortgage.
Origination points paid: $3,000
Loan term: 30 years
÷ 30
------
Annual deduction: $100/year
Instead of deducting $3,000 in year one, you deduct $100/year for 30 years.
19. Accounting software and tools: Schedule E, Line 19 (Other)
If you use software to manage your rental finances, that cost is a deductible business expense.
Example: Say you pay $192/year for FourCasa.
That subscription is fully deductible. And it tracks every other deduction on this list automatically, so you don't miss any of them.
20. Cell phone (business portion): Schedule E, Line 19 (Other)
If you use your cell phone for business purposes, only the business-use share of the bill is deductible.
Example: Say you pay $960/year for your cell plan, and figure 30% of your calls and use are rental-related.
$960/year × 30% business use = $288/year
21. Casualty and theft losses: Form 4684
Say your rental suffers damage from a storm, fire, or flood. If the loss is more than what insurance covers, you can generally deduct the net uninsured amount.
This applies to your rental whether or not it sits in a federally declared disaster area—a real difference from the rules for personal-use property, like your own home.
Theft of property from your rental is also potentially deductible.
Example: Say your rental sustains storm damage, and insurance covers part of it.
Storm damage: $8,000
Insurance payout: -$6,200
------
Net uninsured loss: $1,800
The $1,800 net uninsured loss may be deductible as a casualty loss on Form 4684.
The rules here are specific, so this one's worth a CPA review before you claim it.
22. Real estate education: Schedule E, Line 19 (Other)
Education expenses are deductible if they maintain or improve the skills you need to manage your rental properties. That includes books, courses, and seminars on landlord law, property management, or real estate investing.
Example: Say you spend money on a landlord-tenant law course and a real estate investing book.
Landlord-tenant law course: $180
Real estate investing book: $49
------
Total deductible: $229
23. Safe deposit box and document storage: Schedule E, Line 19 (Other)
If you use a safe deposit box or off-site storage to keep your rental records, leases, and receipts, that cost is deductible.
Example: Say you pay $80/year for a bank safe deposit box holding your property deeds and original leases.
That $80 is deductible.
24. Bank and merchant fees: Schedule E, Line 19 (Other)
Banking costs are deductible too—monthly fees on a dedicated rental bank account, wire fees tied to rental transactions, and merchant processing fees if you accept online rent payments.
Example: Say you pay checking account fees on your rental account and payment processing fees for online rent collection.
Checking account fees: $180/year
Payment processing fees: $320/year
------
Total deductible: $500/year
25. Vacancy-period expenses: varies by expense type
Expenses you keep paying while your property sits vacant are still deductible, as long as you're actively marketing it for rent. That includes mortgage interest, property taxes, utilities, and maintenance.
Example: Say your property sits vacant for six weeks between tenants.
You keep paying $210 in utilities and $140 in lawn care. You also keep your landlord insurance active.
All of that is deductible. Just make sure you're genuinely offering the property for rent.
The 5 deductions you're most likely missing
These five go unclaimed more than any others. Skipping them can cost you $3,000 to $12,000 a year in taxable rental income you didn't need to report.
1. Depreciation
Most landlords don't realize depreciation applies automatically. It covers the building structure, the appliances, and capital improvements, each on its own schedule.
On a $250,000 property, with $30,000 allocated to land, you get an $8,000 annual deduction, with no money out of pocket.
Even if you don't claim this deduction, the IRS treats you as having claimed it. And when you sell, depreciation recapture tax applies based on what you could have claimed.
So not taking this deduction every year costs you money twice.
2. Home office deduction
The reason most landlords skip it isn't just fear of IRS scrutiny. It's that the deduction depends on your rental activity qualifying as a "trade or business," rather than a passive investment. That line is genuinely blurry for a small, self-managing landlord.
If you self-manage your properties and have a dedicated workspace at home, this is worth investigating. But get this checked by a CPA before you claim it.
3. Travel and mileage
You'll probably rack up 40 to 100 trips a year to the hardware store for repairs, or to the property for showings and inspections.
All of these trips are deductible. But if you're not keeping a mileage log, you're not claiming any of them.
4. Mortgage origination points
Mortgage points produce a small annual deduction, and most landlords stop tracking it after year one.
When you buy or refinance a rental property, you often pay origination points as upfront interest.
Unlike on a primary residence, you can't deduct these in one year on a rental. They're amortized over the life of the loan.
On $3,000 in points over a 30-year loan, that's $100/year sitting unclaimed on most Schedule E returns.
5. Vacancy-period expenses
During a vacancy, it's easy to focus only on the rent you're losing.
But the month between tenants is also when your expenses keep coming while your income drops to zero. Every dollar you spend during that period is still a deductible rental expense, as long as you're actively marketing the property for rent.
A six-week vacancy on a typical rental can generate $500 to $900 in ongoing expenses. Every dollar of that reduces your taxable rental income for the year.
How FourCasa tracks every deduction automatically
The reason most landlords miss deductions isn't that the rules are complicated. It's that tracking them without a system is genuinely difficult.
Keeping tabs on 25 expense categories across a whole year is a hassle. It's even harder if you have multiple properties.
FourCasa connects to your bank and reads your receipts. It automatically categorizes every transaction into the correct Schedule E line item.
When your CPA asks for your expense breakdown in March, you click one button. Your Schedule E is ready.
A landlord in Indianapolis with $2,100/month in rent and $4,200 in annual repairs is probably missing:
- $8,000 in depreciation
- $840 in mileage
- $100 in amortized mortgage points
FourCasa tracks all three for you throughout the year, so nothing gets missed at year-end.
For more on landlord taxes, see our guides to how rental income is taxed, bookkeeping and tax tips for landlords, and whether tree removal is tax deductible.
Ready to stop leaving deductions on the table? Start your free 14-day FourCasa trial. Your Schedule E will be organized and ready before your CPA asks for it.
