Residential Rental Property and Rental Expenses

In most cases, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income,

Personal use of rental property. If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. Also, your rental expense deductions may be limited (as in Personal Use of Dwelling Unit including Vacation Home).

Part interest. If you own a part interest in rental property, you can deduct expenses you paid according to your percentage of ownership.

When to Deduct

You generally deduct your rental expenses in the year you pay them.

Types of Expenses

Listed below are the most common rental expenses.

• Advertising.
• Auto and travel expenses.
• Cleaning and maintenance.
• Commissions.
• Depreciation.
• Insurance.
• Interest (other)
• Legal and other professional fees.
• Local transportation expenses.
• Management fees.
• Mortgage interest paid to banks, etc.
• Points.
• Rental payments.
• Repairs.
• Taxes.
• Utilities.

This is not an exhaustive list. Always consult a knowledgeable tax consultant.