Although being a landlord certainly has its cons, tops among its pros are the tax deductions rental homeowners enjoy.
You can use many rental property expenses to offset your rental income. IRS Publication 527 has all the details.
Writing off Rental Home Expenses
Many rental home expenses are tax deductible. Save receipts and any other documentation, and take the deductions on Schedule E. Figure you’ll spend four hours a week, on average, maintaining a rental property, including recordkeeping.
In general, you can claim the deductions for the year in which you pay for these common rental property expenses:
Advertising -Cleaning and maintenance- Commissions paid to rental agent- Home owner association/condo dues- Insurance premiums- Legal fees- Mortgage interest- Taxes- Utilities
Less obvious deductions include expenses to obtain a mortgage, and fees charged by an accountant to prepare your Schedule E. And don’t forget that a rental home can even be a houseboat or trailer, as long as there are sleeping, cooking, and bathroom facilities. Moreover, the location of the rental home doesn’t matter. It could even be outside the United States.(Houselogic)