Skip to Content

Answering Rental Property Tax Deduction Mysteries

Being a rental property owner entails a lot of responsibilities. On the brighter side, this job showcases some of the most accessible rental property tax deductions in comparison to other investment opportunities available. If collecting a monthly rent check interests you, then you are going to enjoy the tax deductions offered to you as a landlord in Troy, Michigan.

Here are the following most common rental property expenses that can be deducted:

  • Advertising and marketing property expenses
  • Professional company cleaning fees in between tenants
  • Professional property management company fees
  •  Fire, theft, flood, liability, employee health, and workers compensation insurance paid premiums
  • Legal and professional fees for attorneys, accountants, and real estate investment advisors
  • Interest paid on the mortgage, and credit cards used for rental activities
  • Landlord paid utilities

Rare Deductions

As a property management leader in Troy, Michigan, take note of this list of inconspicuous rental property tax deductions often ignored by landlords. Familiarize with these deductions, so that you can feel the difference of earning profit instead of losing money in your rental property business.

Local Travel Expenses

Don’t forget to track all the miles you have driven just to visit your rental property for an inspection. Also, include the miles it took to get you to the hardware store just to pick up kitchen parts needed to repair the leak under your kitchen sink.  If you do this, you can deduct in any of these two ways:

  1. Follow the exact amount paid in deducting (for gas and vehicle repair and/or maintenance )
  2. Follow the standard mileage deduction as shown by the IRS.

Repair Costs

Landlords in Troy, Michigan, must be careful in this particular aspect, since IRS does a classification of the repairs and improvements into different categories. Moreover, anything that keeps the property in good condition is considered as part of the repair. Examples include costs to replace broken window and fix leaky faucets. But if you decide to change all your windows with a glass that is double paned or energy efficient, then you are making the right choice. Doing this will extend the life of your property over the years. As a result, it is better for improvement-associated expenses to depreciate than to deduct costs needed for repair.


Property owners can use depreciation to recover the cost associated with acquiring real estate. This concept allows them also to deduct a small fraction of the expenses over a period of many years. Once your property is rent ready, depreciation begins, even if no renter has occupied it yet. It stops either when you have recovered the expenses of your home or when you stop open the property for rent.

Burglary and Calamity

If a natural catastrophe has damaged your rental property, you can deduct your taxes due to your loss. Tax deduction in this category depends on the sum of property damages and the amount covered by insurance.

For inquiries regarding rental property tax deductions available, never hesitate to give us Real Property Management in Troy, Michigan, a call. We will be glad to be at your service!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details