Tax Tips & Write-Offs Every Landlord Should Know

Owning rental property comes with tax advantages many landlords don’t fully use. Understanding basic tax deductions and smart tax practices can help you lower your taxable income, improve cash flow, and stay compliant with IRS and DC tax rules.

Below are foundational tax tips and common write-offs landlords can take advantage of.

1. Rental Income Is Taxable — But Many Expenses Are Deductible

All rent you collect is considered taxable income, including:

  • Monthly rent payments

  • Late fees

  • Pet fees

  • Application or screening fees (if retained)

The good news: most ordinary and necessary expenses related to managing and maintaining your rental property are deductible.

2. Common Tax Deductions for Landlords

Mortgage Interest

If you have a loan on your rental property, the interest portion of your mortgage payment is deductible.

Property Taxes

Local and state property taxes paid on rental properties are fully deductible as a business expense.

Repairs & Maintenance

You can deduct costs to keep the property in good condition, including:

  • Plumbing and electrical repairs

  • Painting

  • Appliance repairs

  • Roof patching

  • Pest control

  • Landscaping and snow removal

Tip: Repairs are deductible in the year paid. Improvements are depreciated over time.

3. Depreciation: A Major Tax Benefit

Depreciation allows landlords to deduct the cost of the building (not the land) over time, typically:

  • 27.5 years for residential rental property

This is a paper deduction—you don’t need to spend money annually to claim it, yet it can significantly reduce taxable income.

Many landlords miss or incorrectly calculate depreciation—this is where a tax professional adds value.

4. Operating & Administrative Expenses

Landlords can deduct day-to-day business expenses, including:

  • Property management fees

  • Accounting and tax preparation fees

  • Legal fees related to the rental

  • Office supplies

  • Postage and mailing costs

  • Software subscriptions (bookkeeping, rent collection, screening tools)

5. Utilities & Services

If you pay utilities on behalf of tenants, those costs are deductible:

  • Water and sewer

  • Gas and electric

  • Trash removal

  • Internet or cable (if included)

6. Insurance Premiums

Insurance costs related to your rental property are deductible, including:

  • Landlord insurance

  • Liability insurance

  • Umbrella policies tied to rental activity

7. Travel & Transportation

You may deduct mileage or travel costs when driving for rental-related purposes, such as:

  • Property inspections

  • Meeting contractors

  • Purchasing supplies

  • Court appearances or administrative visits

Keep a mileage log and note the business purpose.

8. Home Office Deduction (If You Qualify)

If you use part of your home regularly and exclusively for managing your rental business, you may qualify for a home office deduction, covering:

  • A portion of rent or mortgage

  • Utilities

  • Internet

  • Insurance

This deduction has specific rules—documentation is key.

9. Professional Fees Are Deductible

Fees paid to professionals are fully deductible, including:

  • CPAs and tax preparers

  • Bookkeepers

  • Attorneys

  • Consultants

  • Property inspectors

10. Keep Good Records Year-Round

Smart tax planning starts with good bookkeeping:

  • Keep receipts and invoices

  • Separate personal and rental finances

  • Use a dedicated bank account

  • Track income and expenses monthly

Good records make tax filing easier and help protect you in the event of an audit.

11. Don’t Forget DC-Specific Requirements

Washington, DC landlords may have additional considerations such as:

  • Business registration and licensing

  • DC tax filings

  • Rental income reporting requirements

Working with a tax professional familiar with DC landlord regulations can help avoid costly mistakes.

Final Tip: Get Professional Guidance

Tax rules change, and every landlord’s situation is different. A qualified tax professional can:

  • Identify deductions you may be missing

  • Ensure proper depreciation

  • Help with entity structure (LLC, S-Corp, etc.)

  • Plan for quarterly taxes

  • Reduce audit risk

👉 Need help? Fill out the form below to get matched with a tax expert who understands rental property and DC regulations.

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