Rental Property Expense Deduction Guide (2026) - Landlord Tax Benefits
Rental property deductions: operating expenses, depreciation, mortgage interest, repairs, and passive income rules for landlords.
Summary
Rental property deductions reduce taxable income: mortgage interest, property tax, repairs, depreciation (27.5 years residential), insurance, management fees.
Key Steps
- 1Operating expenses: property tax, insurance, repairs, maintenance, management fees.
- 2Mortgage interest: deductible against rental income, not personal mortgage.
- 3Depreciation: 27.5 years for residential, 39 years for commercial property.
- 4Passive income rules: deductions limited to passive income, excess carries forward.
- 5Record keeping: maintain receipts, track all expenses for audit protection.
- 6Pass-through deduction: 20% QBI deduction for qualified rental income.