What are the deductible expenses for rental properties?

What are the deductible expenses for rental properties?

Deductible expenses for rental properties include mortgage interest, property tax, operating expenses, depreciation, and repairs.

Can I deduct the cost of repairs I made to the property?

Yes, you can deduct the cost of repairs that keep the property in good condition, but improvements that increase value must be capitalized.

What about property management fees?

Absolutely! Property management fees are also deductible as they are considered ordinary and necessary expenses for managing your rental.

Are there any limits on how much I can deduct?

Generally, there are no limits on the amount you can deduct for ordinary and necessary expenses, but keep accurate records.

How do I report these deductions on my tax return?

You report rental property deductions on Schedule E of your tax return, detailing income and expenses related to the property.