What can a Taxpayer deduct as a Rental Real Estate Expense?

Generally speaking, the IRS Tax Code specifically states that "the costs a Taxpayer incurs to place the property in service, manage it and maintain it generally are deductible".

The qualified deductible expense list is quite extensive and the list below shows some of the more common expenses associated with Rental Real Estate Properties as folllows:

-Advertising
-Cleaning and maintenance
-Commissions paid to Realtors for Maintaining the Property
-Depreciation taken on the building
-Disposal/trash collection charges
-Gardening and Landscaping expenses
-Homeowner's associations dues and condo fees
-Interest expense on Loan to purchase the Rental Property
-Legal expenses incurred in connection to Tenant Lease or Filing Eviction Notice
-Property taxes paid on the property
-Management fees
-Pest control
-Property Insurance premiums
-Repairs
-Tax preparation fee related to schedule 'E' Rental Property Schedule
-Travel expenses to your rental property if the primary purpose of the trip is business.
-Utilities

The above expenses are all allowable and deductible provided they are ordinary and necessary to properly maintain the rental property but they must be reasonable.

It is recommended that the taxpayer maintain excellent records to substantiate all of the above expenses. The IRS would be especially interested in having these records available in case of an audit.

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