The real estate market has become pretty demanding, especially financially. Purchasing property to rent out presents you with a lucrative opportunity, but you must be fully aware of what you are getting yourself into. It can be a considerable investment, which may require substantial capital. The good news is that there are some property tax deductions you can enjoy, especially if you are clear on your property tax payments. Those are the deductions you will be learning about in this article.


Unlike what most people think, rental units depreciate with time. Experts in the industry estimate that the total lifespan of rental properties is about 27 years. It is possible to get annual deductions due to the depreciation of your rentals if you are a landlord. Nonetheless, it is advisable to work with a tax professional that is better positioned to help you with the calculations, considering that they can sometimes be tricky.

Property Taxes

As a property owner, it is your obligation to make the necessary tax payments to the federal and state governments. However, the amount you pay primarily depends on where your rentals are located and their value. According to experts, this is one of the deductions that many landlords overlook. That is why you should never forget to deduct property taxes. This means you will be paying a little less on such taxes.

Repairs and Maintenance

Improvement projects are essential to keep the property in good shape. However, not all repair and maintenance expenses are deductible – just those that keep your houses in a rentable state but do not add any value. Landscaping, plumbing, additions, and interior upgrades are some of the improvements approved by the IRS. Besides that, you can deduct any labor costs if you hire an expert or a sight manager. If you handle the projects as DIY, you may deduct the rental charges for any equipment and tools you use.

Purchasing a rental property is a significant financial investment. Fortunately, you can talk to Rushview Commercial Funding today to get all the financial help and advice you may need to grab the opportunity.