Most rental owners deduct the obvious: mortgage interest, repairs, property taxes. The money is in the categories they miss. Here are the ones we see left on the table.
The quick answer
The most-missed rental deductions: depreciation on the structure over 27.5 years, management and leasing fees, mileage to the property, landlord insurance premiums, HOA dues, and professional services like CPA fees. Clean expense records, usually via a management statement, make every deduction defensible.
The big one: depreciation
The structure of a residential rental depreciates over 27.5 years, a paper expense that reduces taxable income every year you own the property. Owners who skip it, or calculate it on the wrong basis, hand back the rental's best tax feature.
Commonly missed deductions
- Management and leasing fees: fully deductible, including tenant placement.
- Mileage and travel for property visits and supply runs.
- Insurance premiums, including umbrella policies covering the rental.
- HOA dues on rented properties.
- Professional services: CPA fees, legal consultations, even the rental-related share of software.
- Appliances and improvements, depreciated or expensed depending on cost and rules that change, which is what CPAs are for.
The record-keeping that makes it real
Deductions survive scrutiny when the paper trail is clean. A management statement that itemizes every expense by category does most of this work automatically, one more quiet argument for professional accounting.
Common questions
What is the biggest rental tax deduction?
Depreciation, usually. The building depreciates over 27.5 years regardless of what the market does, reducing taxable income every year you own it. Owners who skip it or compute it on the wrong basis leave the rental's best tax feature unused.
Are property management fees tax deductible?
Fully. Management fees, tenant placement fees, and renewal fees are all ordinary rental expenses on Schedule E.
Do I need receipts for every expense?
You need documentation that survives scrutiny. A management statement itemizing every expense by category does most of the work; keep receipts for anything you pay outside that account.
Not tax advice
General education, not tax advice. Bring this list to a CPA who knows rental real estate, and deduct their fee too.