4 Lesser-Known Tax Deductions for Landlords

The Alliance is here to help housing providers take advantage of the tax benefits available to them when filing this year. Whether you own one rental property or dozens, these tax deductions can help you keep more money in your pocket. Most rental property owner deductions can be claimed in Form 1040 and filed with your regular annual tax return.


Pass-Through Deduction

Certain landlords who are owners of sole proprietorships, partnerships, S corporations and certain trusts may deduct up to 20% of their net rental income from their income taxes if their rental activity rises to the level of a business instead of an investment. Owners of rental property who spend at least 250 hours per year on the property or properties may also qualify. This deduction is set to be available from 2018 through 2025—take advantage of it while you can!

Advertising Costs

Owners of rental property can deduct expenses that help you bring in new tenants and keep existing ones. This includes “For Rent” signs, newspaper ads, digital advertising and more.

Legal and Professional Services

Owners of rental property may deduct fees paid to attorneys, accountants, advisors, and other professionals incurred from buying and maintaining the property.

Travel and Transportation

Owners of rental property can deduct travel expenses incurred when traveling to their rental building to deal with a current tenant complaint or to locations related to maintaining the property — this includes the hardware store!

These 4 lesser-known deductions can help save you money this tax season, but don’t forget to claim deductions for utility, insurance, and repair costs when you file as well.

Preserving and expanding tax benefits for property owners is a top priority for the American Property Owners Alliance. Sign our petition to advocate for tax policies that support homeowners.
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