Tax Savings Every Landlord Should Know

Rentals are tax-advantaged by design

Few investments are treated as favorably as rental real estate. Understanding the basics — and keeping clean records — is often worth thousands a year.

Common deductions

• Mortgage interest and loan points.
• Depreciation — a non-cash deduction that shelters income each year.
• Repairs and maintenance, property management, and turnover costs.
• Insurance, property taxes, and utilities you pay.
• Travel, mileage, and home-office expenses tied to managing the property.

Strategies worth a conversation with a pro

• Cost segregation to accelerate depreciation on larger properties.
• 1031 exchanges to defer capital gains when you trade up.
• Entity structure (LLC, etc.) for liability and, sometimes, tax planning.

The foundation: records

Every strategy depends on clean books. Track income and expenses by property all year — not in a shoebox at tax time — so you capture every deduction and can hand your accountant something usable. This is general information, not tax advice; confirm specifics with a CPA.