Are your rentals getting every deduction they qualify for?
For business owners and self-employed professionals. Eligibility depends on your situation.
Rental buildings are depreciated over 27.5 years for residential property. A cost segregation study can identify parts of a property that depreciate faster, and bonus depreciation may apply to qualifying property. Passive loss rules can limit how much loss you use now.
Gather closing statements and improvement invoices for each property before asking about a study.
Ordinary repairs are generally deducted in the year paid, while improvements are capitalized and depreciated. Safe harbor elections can help with small purchases and routine maintenance.
Separate repair invoices from improvement invoices by property and keep descriptions of the work.
Local trips to manage, show or repair a rental may be deductible. Overnight travel needs a business purpose tied to the rental. Regular personal trips do not qualify.
Log date, property, purpose and miles for each trip. Keep receipts for tolls and lodging.
Business expenses must be ordinary and necessary. Keep receipts and the business purpose; separate personal use and reimbursements. Dollar limits shown are for 2026 and can change; eligibility and entity type matter. General education, not individual tax advice.
Book a free 15-minute year-end tax check with Louisa, by phone.
Book your free 15-minute tax check →Or call or text 281-656-9666.