Property Management Blog

Tax deductible home expenses

Lidieth Macicek - Wednesday, January 22, 2014
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What home expenses are tax deductible? Many rental home expenses are tax deductible. Here are some of the most common deductible expenses for rental homes, according to the IRS. You can usually take these write-offs even if the rental home is vacant temporarily.

  • Management fees/Placement fees
  • Cleaning and maintenance
  • Repairs
  • Supplies
  • Home owner association dues
  • Insurance premiums
  • Legal fees(eviction notice)
  • Mortgage interest
  • Taxes
  • Utilities

The difference between Repairs and improvements  :The tax code lets you write off repairs (fixes that keep your property in working condition). The costs of improvements that add value to a rental property or extend its life must be depreciated over several years.  If you would with a quality home improvement company like Style by Carden Exteriors Inc they can help you decide which improvement would be best to do. 


Repair:  Patching a roof leak 

Improvements:  Re-shingling the entire roof. 

Profit/loss:  Rent collected from your tenant counts as income. You lower your tax bill, by deducting your rental home expenses including depreciation.  You can even write off a loss on a rental home as long as you meet income requirements, own at least 10% of the property, and actively participate in the rental of the home.  If your property has a loss ask your accountant about the rules and regulations for Passive activity losses on a rental property (PAL). 

AREA Texas Realty & Management owners:  please download your Detailed Income Statement report within your owner portal/reports tab for a detailed breakdown of your Income-Expenses=Taxable Rental Income

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