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Landlord tax deduction list (with free checklist)
Every common deduction for US residential landlords, organized by Schedule E line. You'll also find what's not deductible, what counts as income, and the 2026 numbers to know.
Updated October 2026. General information for US landlords, not tax or legal advice.
Deductible expenses
| Deduction | Examples | Sch. E line |
|---|---|---|
| Advertising | Listing sites, signs, ads, tenant-screening service fees | 5 |
| Auto & travel | Standard mileage (or actual costs) for rental trips, parking, tolls; 50% of meals when traveling away from home | 6 |
| Cleaning & maintenance | Turnover cleaning, lawn care, snow removal, pest control | 7 |
| Commissions | Leasing agent or rental commissions | 8 |
| Insurance | Landlord/dwelling policy, liability, flood | 9 |
| Legal & professional fees | Tax prep for the rental, attorney, eviction filings (not fees to buy or defend title: those are capitalized) | 10 |
| Management fees | Property manager's percentage and leasing fees | 11 |
| Mortgage interest (banks) | Interest from Form 1098; principal is never deductible | 12 |
| Other interest | Seller-financed or private loans, credit card interest for rental costs | 13 |
| Repairs | Fixing what's broken: leak, lock, broken window pane, patching drywall, repainting a room | 14 |
| Supplies | Smoke detectors, filters, bulbs, small tools and hardware | 15 |
| Taxes | Property taxes on the rental; payroll taxes if you have employees | 16 |
| Utilities | Water, sewer, trash, gas, electric you pay; rental-related phone calls | 17 |
| Depreciation | Building over 27.5 years; improvements and appliances on their own schedules (Form 4562) | 18 |
| Other | HOA dues, bank fees, software, licenses and permits, amortized loan points | 19 |
Deductions landlords often miss
- Mileage for showings, inspections, repairs and supply runs. Keep a log at the time of the trip.
- Depreciation. It reduces your basis whether or not you claim it ("allowed or allowable"), so skipping it costs you twice. See the depreciation calculator.
- Expenses while the property is vacant but held out for rent.
- Loan points on a rental, deducted over the life of the loan.
- Tax prep fees for the rental part of your return (line 10).
- Travel to a rental away from home: transportation, lodging and 50% of meals, if the main purpose is the rental.
Not deductible
- Mortgage principal.
- Improvements, in the year paid (depreciate them instead).
- Land.
- The value of your own time and labor.
- Expenses for days of personal use.
- Fines and penalties.
What counts as rental income
- Rent, including advance rent in the year you receive it, even if it covers future months.
- Fees: late fees, pet rent, application fees.
- Security deposits you keep. A deposit that will be applied to the final month's rent is advance rent.
- Expenses the tenant pays on your behalf, and the fair market value of services or property received instead of rent.
Key numbers (2026)
| Item | Amount | Source |
|---|---|---|
| Business standard mileage | 72.5¢/mile Jan 1–Jun 30; 76¢ Jul 1–Dec 31 (2025: 70¢) | IRS Announcement 2026-11 |
| Residential rental depreciation | 27.5 years, straight line, mid-month | Pub 946 |
| De minimis safe harbor | $2,500 per invoice/item (no applicable financial statement) | Reg. §1.263(a)-1(f) |
| Passive loss allowance | Up to $25,000; phased out at $100k–$150k MAGI | Pub 925 |
| Personal-use threshold | More than the greater of 14 days or 10% of rental days | Pub 527 |
Track deductions all year
Deductions are only as good as your records. The Rental Property Tracker maps every expense to its Schedule E line and calculates depreciation and mileage at the right IRS rate for each trip date. If you're just starting, use the free template.
Sources: IRS Instructions for Schedule E; Pub 527; Pub 946; Pub 925; Pub 463; IRS standard mileage rates.
FAQ
Can I deduct my mortgage payment on a rental?
Only the interest portion (plus escrowed property taxes and insurance when they're paid). Principal isn't deductible.
Can I deduct expenses for a vacant rental?
Generally yes, while the property is held out for rent. Expenses before it's first placed in service are usually capitalized instead.
Should I take the standard mileage rate or actual costs?
Either is allowed, with conditions. To use the standard rate for a car you own, you must choose it in the first year the car is used for the rental. See the Schedule E instructions and Pub 463.
Is the checklist PDF really free?
Yes. Download it directly, no email required.