<p>&lt;p&gt;Rental income is taxable, but the IRS allows landlords to deduct a wide range of expenses. These deductions are reported on &lt;strong&gt;Schedule E&lt;/strong&gt; of your Form 1040.&lt;/p&gt;&lt;h2&gt;Deductible Rental Expenses&lt;/h2&gt;&lt;ul&gt;&lt;li&gt;&lt;strong&gt;Mortgage interest:&lt;/strong&gt; Fully deductible for rental properties&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Property taxes:&lt;/strong&gt; Deductible (no $10,000 SALT cap for rental properties)&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Depreciation:&lt;/strong&gt; You can depreciate the building (not land) over &lt;strong&gt;27.5 years&lt;/strong&gt; β€” one of the most valuable deductions&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Repairs and maintenance:&lt;/strong&gt; Deductible in the year incurred (improvements must be capitalized)&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Insurance premiums:&lt;/strong&gt; Fully deductible&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Property management fees:&lt;/strong&gt; Fully deductible&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Advertising:&lt;/strong&gt; Listing fees, photography, signage&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Professional fees:&lt;/strong&gt; Accountant and attorney fees related to the rental&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Travel:&lt;/strong&gt; Miles driven to manage, maintain, or collect rent&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Utilities you pay:&lt;/strong&gt; Fully deductible&lt;/li&gt;&lt;/ul&gt;&lt;h2&gt;Passive Activity Loss Rules&lt;/h2&gt;&lt;p&gt;Rental losses are generally passive. You can deduct up to &lt;strong&gt;$25,000&lt;/strong&gt; in rental losses against ordinary income if your AGI is $100,000 or less. This phases out above $100,000 and disappears at $150,000 AGI.&lt;/p&gt;&lt;h2&gt;Repairs vs Improvements&lt;/h2&gt;&lt;p&gt;Fixing a broken window is a repair (deduct now). Replacing all windows is an improvement (capitalize and depreciate). The distinction matters for your tax return.&lt;/p&gt;&lt;p&gt;&lt;em&gt;Source: IRS Publication 527; Schedule E Instructions&lt;/em&gt;&lt;/p&gt;</p>