Many rental home expenses are tax deductible. Save receipts and any other documentation, and take the deductions on Schedule E.
In general, you can claim the deductions for the year in which you pay for these common rental property expenses:
- Advertising
- Cleaning and maintenance
- Commissions paid to rental agents/property managers
- Home owner association/condo dues
- Insurance premiums
- Legal fees
- Mortgage interest
- Taxes
- Utilities
Less obvious deductions include expenses to obtain a mortgage, and fees charged by an accountant to prepare your Schedule E.
And don’t forget that a rental home can even be a cabin, houseboat or trailer, as long as there are sleeping, cooking, and bathroom facilities and you can show some income from rents.