List of Available Tax Deductions That Landlords can Take Advantage of Before Tax Day

As April 15 nears, The National Association of Independent Landlords urges landlords to learn about and take advantage of the many tax write-offs that could save them money on tax day. “Every legitimate deduction a landlord takes means more money in their bank account,” said Tracey Benson, president of The National Association of Independent Landlords. “Tax deductions can determine whether a landlord makes or loses money, so it’s vital they understand some of the often overlooked write-offs.  Even if they have already submitted their taxes, they should consider refiling if they find something significant.”

An accountant can identify more deductions, but here is a starting list:

MONTHLY/ANNUAL FEES

- Interest on money borrowed for the investment.
Insurance.
- State and local property taxes.
- Professional memberships.
- Monthly homeowner or condo dues.
- Utilities, garbage collection and lawn care.

KEEPING THE PROPERTY IN GOOD WORKING ORDER

- Repairs to make the property handicapped accessible or keep it in its original condition.
- Rental equipment for repairs.

AUTO AND TRAVEL

- Property-related mileage (trips to collect rent, for example) at 56.5 cents per mile.
- Out-of-town transportation, lodging and meals to show or work on a property.
- Tolls, parking, state registration, fees and taxes.

ONE OFFS

- At least partial damage from a fire, flood or other catastrophe.
- Mortgage fees.

PERSONNEL

- Money paid to employees, contractors, lawyers, accountants and property managers.

OUT OF POCKET EXPENSES

- Advertising and costs related to tenant screening.
- Cleaning. If a relative is paid to do the work, make sure the proper tax forms are filed.
- Almost anything paid to resolve a pertinent tax underpayment.
- Telephone calls related to the rental business.
- Office supplies.
- Home office if it’s the primary place of business and is a set-aside location.

Important to remember: landlords filing for an extension have until October 15 to submit their paperwork, but they must pay any money due by April 15.

For a landlord to claim property as a rental, they generally cannot use it for personal use for more than 14 days a year, though conditions apply.