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Commonly Overlooked Aspects of Rental Property Tax Deductions

The landlord life entails heaps of responsibilities. However, it provides some of the most quickly accessible rental property tax deductions in comparison to any other investment opportunity. If collecting a monthly rent check is your liking, then you are going to enjoy the tax deductions available to you as a Troy, Michigan rental property owner.

Some most common and deductible rental property expenses include the following:

  • Property advertising and marketing expenses
  • Cleaning charges paid to professional companies between tenants
  • Charges paid to a professional property management company
  • Premiums paid for fire, theft, flood, liability, employee health, and workers compensation insurance
  • Legal and professional charges paid to attorneys, accountants, and real estate investment advisors
  • Interest paid on the mortgage and credit cards used for rental activities
  • Utilities you pay as the landlord

Overlooked Deductions

As a property management leader in Troy, Michigan, take note of this inconspicuous rental property tax deductions list often ignored by landlords. Making use of these deductions may cause you to gain more rental property profits instead of losses.

Local Travel Expenses

Remember to track the miles driven in your car as you drive by your rental property for inspection. Moreover, include the miles needed for you to pick up the kitchen parts at the hardware store to fix kitchen sink leaks. You can deduct in two ways:

  1. Take note of the exact amount paid (for gas, upkeep, and repairs on the vehicle)
  2. Take note of the standard mileage deduction shown by the IRS.

Repair Expenses

Troy, Michigan landlords must be cautious in this area, since the IRS categorizes improvements and repairs into separate groups. Repairs are known as anything that keeps the property in good working condition, like changing a broken window or fixing a leaky faucet. But if you decide to replace all windows with double-paned or energy-efficient glass, then this is the right action towards extending property longevity for the coming years. While the repair expenses can be deducted, improvement-associated costs undergo depreciation.


With depreciation, property homeowners can recover the cost paid to acquire their real estate, since this area allows them to deduct a small fraction of the costs over a period of many years. Depreciation begins when the home is rent ready, even if there are zero occupants.  Meanwhile, it stops when you have recovered the cost of the home. It also stops if you withdraw your property from the rental business.

Calamity & Theft

If natural disasters or stealing caused damage to your rental property, you can deduct taxes from a portion of your loss. The amount deductible depends upon how much damage was incurred and how much your insurance can cover the loss.

For inquiries about rental property tax deductions that you can avail, contact us here in Troy, Michigan, and we will be glad to be of help!

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