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Can I take a tax deduction for rental expenses on my tax return?
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| If you receive rental income from the rental of a dwelling unit, such as a house or
apartment, there are certain rental expenses you may deduct on your tax
return. These tax deductible rental expenses reduce the amount of
rental income that you pay tax on. Generally,
rental income and rental expenses from rental property are
reported on Form 1040, Schedule E.
On Form 1040, Schedule E, taxpayers report rental income and rental expenses including mortgage
interest, property tax, depreciation, and repairs. If your rental expenses exceed
rental income you may
report a loss of up to $25,000 on your tax return, limited for adjusted gross incomes above $100,000.
If you also use the dwelling unit as a home, or rent it at less than fair rental value,
certain restrictions apply to the tax deduction of your rental expenses on
your tax return.
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| Related tax
information about tax deductible rental expenses |
Tax Directory Topics:
Passive Activity Losses |
IRS publications about rental expenses and rental income:
Refer to Tax Topic 414, Rental Income and Expenses,
Tax
Topic 415, Renting Vacation Property/Renting to Relatives, or
IRS Publication 527, Residential
Rental Property, for more information on what expenses you are able to deduct. Also
see IRS Publication 17, Your
Federal Income Tax. Please read this IMPORTANT
Editor's Note regarding navigating IRS publications with Adobe
Acrobat
Reader.
IRS publications can also be ordered by calling 1-800-829-3676. |
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