Landlord tax deductions & Schedule E basics

Most of the routine cost of operating a rental is deductible against rental income in the year you pay it.

• Mortgage interest (not principal)
• Property tax and landlord insurance premiums
• Repairs and maintenance
• Property management fees
• HOA dues, where they apply

Depreciation — the one landlords most often miss

Beyond the deductions above, you can also depreciate the building’s value (not the land) over 27.5 years, straight-line. This is a paper deduction — you’re not spending this money each year — and it’s often one of the largest write-offs on the return, so it’s worth getting right rather than skipping.

Commonly overlooked deductions

A few categories are easy to leave on the table without a dedicated system for tracking them.

• Mileage driving to and from the property
• A home-office deduction for the time spent managing it
• Tenant screening and background-check fees
• Legal and professional fees, including tax prep for the rental

The 1099-NEC threshold

Any contractor or vendor you paid $600 or more over the year — a plumber, a handyman, a property manager — generally needs a 1099-NEC from you by January 31 of the following year.

Where it all lands: Schedule E

Rental income and all of the expenses above are reported on IRS Schedule E, filed alongside your Form 1040 — one Schedule E per property. This guide is general information, not tax advice; a tax professional can confirm what applies to your specific situation.