Can I Deduct Rental Property Expenses?

Owning a rental property comes with significant expenses, and nearly all of them are deductible against your rental income. Mortgage interest, property taxes, insurance, repairs, property management fees, and advertising costs are all deductible rental expenses. You can also deduct depreciation, which represents the gradual wear on the building over time, and this often reduces taxable rental income significantly. If your deductible expenses exceed your rental income, you may be able to deduct the net rental loss against your other income, depending on your income level and how actively you participate in managing the property. Keeping careful records of all income and expenses throughout the year makes filing your rental schedule much smoother.