What Expenses Are Tax Deductible for Rental Property?

The affordability of housing plays a vital role in ensuring that people of all income levels have access to safe and affordable housing. If you’re a U.S. resident who owns or manages rental property designed to provide affordable housing, you may be eligible for certain tax benefits. Understanding what expenses are tax deductible for rental property can significantly impact your financial bottom line.

Related Webinars
Fair Housing – The Posture You Choose and the Words You Use May Get You Sued
Apr 24th 2024 @ 01:00 PM ET
Speaker: Anne Sadovsky
Learn More
Redefining Boundaries: The New Era of Income Eligibility in Public Housing with HOTMA
Apr 25th 2024 @ 01:00 PM ET
Speaker: Tina M Austin
Learn More
Documenting Resident Violations in 2024
Apr 30th 2024 @ 01:00 PM ET
Speaker: Paul Flogstad
Learn More

In this blog, we will explore the key deductions available to you as an owner or manager of affordable housing properties.

Mortgage Interest

The mortgage interest deduction is among the biggest benefits offered to owners of rental properties. Interest on loans taken out to buy, renovate, or maintain the property is included in this cost. Owners of properties with affordable housing may deduct this amount, which will lower their taxable income and, eventually, their tax obligation.

Property Depreciation

Property deduction is another beneficial deduction for owners of real estate used for affordable housing. You can claim an annual depreciation expense and deduct a portion of the property’s worth from your taxes, according to the Internal Revenue Service (IRS). Your total taxable income may be reduced by this expense by offsetting your rental revenue.

Property Maintenance and Repairs

Whether or if it is inexpensive, owning rental property entails property maintenance. Tax deductions apply to costs for maintenance and repairs that are required, such as replacing a roof, painting, or repairing plumbing problems. To get the most deductions possible, thorough documentation of these costs must be kept.


If you, as the property owner, are responsible for paying utilities, such as water, electricity, gas, or garbage collection, you can usually deduct these costs from your taxable income. Affordable housing property owners often include utilities in their rental packages for their tenants, which makes these deductions especially relevant.

Property Management Fees

If you hire a property management company to oversee your affordable housing rental property, you can deduct their fees. Usually, these fees cover a range of services, such as collecting rent, maintaining the rental property, and screening potential tenants. To be eligible for the deduction, make sure you maintain a record of these costs.

Insurance Premiums

To safeguard your investment, property insurance is essential. Your property insurance premiums, which cover liability, theft, and fire damage, are deductible. This expenditure is essential to maintaining the safety and functionality of your affordable housing asset.

Legal and Professional Fees

You may also be able to deduct professional and legal fees from your rental property taxes. This covers costs for professional services like tax preparation, accountancy, and legal advice. Owners of affordable housing properties should maintain documentation of all costs incurred for these services.

Advertising and Marketing

You can deduct advertising costs you incur to attract qualified tenants for your rental property that offers affordable housing. The price of making rental listings, marketing the rental property, and checking prospective tenants’ backgrounds can all be included in this.

Travel Expenses

Travel expenses are often deductible if you have to go to your rental property for upkeep, inspections, or other legitimate reasons. Transportation, housing, and food are included in this, but it’s crucial to maintain accurate documentation and only submit claims for costs that are directly associated with your rental property.

Home Office Deduction

You can qualify for a home office deduction if you keep an office area at home that is solely utilized for managing your rental property effectively. This deduction can be used to pay for things like utilities, home office supplies, and a percentage of your rent or mortgage.


As a U.S. resident managing affordable housing rental property, it’s important to understand the tax benefits available to you. By taking advantage of these tax deductions, you can reduce your overall tax liability and maximize the financial sustainability of your affordable housing investments. However, tax laws and regulations can be complex and subject to change, so it’s advisable to consult with a tax professional or seek guidance from the IRS to ensure you’re taking full advantage of all available deductions while staying compliant with tax laws. Ultimately, by understanding what expenses are tax deductible for rental property, you can continue to provide affordable housing while also securing your financial future.

Stay Updated

Don’t miss any latest Affordable Housing update

Share Now

About Us

At Affordable Housing Updates, we are dedicated to offering top-quality insights. news, articles and free webinars on Affordable Housing Property Management

Recent Posts

FInd the Latest

Affordable Housing Updates

In Your Inbox

confirm your email

Your signup is almost complete! Please check your email for a confirmation message.