Checklist for Rental Deductions
The following expenses are deductible from rental income on Schedule E of Form 1040
Real Estate taxes and mortgage interest paid on your rental property
Construction period interest and taxes: typically, these need to be depreciated and capitalized
Depreciation of the building being rented. Land value is not subject to depreciation. You begin to calculate from the month you begin to rent the property or take ownership with the intent to rent.
Furniture, appliances, carpeting, are 5-year property for the purpose of depreciation. Furniture in office buildings are considered 7-year property
Management fees and fees incurred for someone to collect rents
Maintenance expenses including heating repairs, lighting, water, utilities, heating oil etc.
Salaries and wages: payments to superintendents, janitors, elevator operators, and other maintenance personnel
Traveling expenses to look after property: You must demonstrate the purpose of the trip was specifically for the business of owning the property and not a vacation
Legal expenses for evicting tenants or writing leases
Commissions paid to find tenants and collect rentals
Premiums for property insurance, fire insurance, liability insurance etc.
Tax preparation cost for the preparation of schedule E and related depreciation forms
If you rent your property to a friend or relative for less than the fair market rental value, you may deduct expenses and depreciation only to the extent of the rental income
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