Tax Benefits of Rental Property Ownership

This guide provides general information only and should not be considered tax advice. Tax laws are complex and change frequently. Always consult with a qualified tax professional or CPA familiar with rental property taxation in your state.

The information here is current as of 2025 but may change based on new tax legislation.

Rental property ownership provides significant tax benefits not available to non-investors:

• Deduct ordinary business expenses
• Depreciation reduces taxable income (without cash outlay)
• Mortgage interest deduction (no limit for rentals)
• Passive income potential
• 1031 exchanges for tax deferral
• Potential for long-term capital gains treatment

Maintenance & Repairs:

• ✅ Routine repairs
• ✅ Painting
• ✅ Plumbing fixes
• ✅ HVAC servicing
• ✅ Appliance repairs