Top Tax Deductions Every Landlord Should Know

By PropsManager Team | Dec 17, 2025

Top Tax Deductions Every Landlord Should Know

One of the biggest benefits of investing in real estate is the tax treatment. However, you can only claim what you know about and can prove.

1. Mortgage Interest

Usually your single largest deduction. You can deduct interest paid on loans used to acquire or improve rental property.

2. Depreciation

You can't deduct the cost of the house all at once, but you can depreciate it over 27.5 years. This is a "phantom expense" that lowers your taxable income without cash leaving your pocket.

3. Repairs vs. Improvements

• Repairs: Deductible immediately (e.g., fixing a leak, painting a room).
• Improvements: Must be depreciated over time (e.g., new roof, adding a room).

4. Property Taxes and Insurance

Deductible as business expenses.

5. Travel

Travel to and from your rental property for maintenance or inspections is deductible (standard mileage rate).

6. Professional Services

Fees for lawyers, accountants, and property management software like PropsManager are 100% deductible.

Conclusion

Disclaimer: We are not tax professionals. Always consult a CPA. Keeping organized records is key to surviving an audit. Use software to track every expense receipt throughout the year.