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Temecula Rental Property Tax Deductions

Street view of houses in summerDo you enjoy collecting rent checks on a monthly basis? If so, then you will also enjoy the tax deductions available. Some of the most common Temecula rental property deductions are as follows:

  • Costs for property advertising and marketing
  • Cleaning fees paid to professional companies between tenants
  • Professional property management or bookkeeping company fees
  • Premiums paid for fire, theft, flood, liability, employee health, and workers compensation insurance
  • Legal and professional fees from attorneys, accountants, and real estate investment advisors
  • Interest paid on the rental property’s mortgage

Less Common Deductions

As the property management leader, we developed a list of Temecula rental property tax deductions often overlooked by landlords. Taking these deductions could make the difference between turning a profit and seeing a loss with your rental property.

Local Travel Expenses

Did you drive to the hardware store to pick up parts needed to fix a kitchen faucet leak? Did you drive to your rental property for an evaluation? Remind yourself to track the miles driven in your car since these can be used as tax deductions in one of these two ways:

  1. Use the exact amount paid (for gas, upkeep, and repairs on the vehicle).
  2. Use the standard mileage deduction provided by the IRS.

Repair Costs

Property owners must be careful with repair costs because the IRS classifies repairs and improvements into distinct categories. Repairs are defined as things that maintain good functionality, such as a broken window replacement or leaky faucet fix. But if you choose to replace all windows with double-paned or energy-efficient glass, then this is an improvement that could prolong the property’s life. You can deduct the costs of repairs, whereas you must depreciate improvements.


Landlords can regain their costs from acquiring a real estate property with depreciation’s help. Depreciation permits them to deduct a small portion of the costs over a period of many years. Depreciation starts when the home is rent ready, even if vacant. It ends once you have recovered the home’s cost or when you stop renting the property out.


A casualty loss occurs as a result of factors such as fire, theft, vandalism, earthquake, flood, storm, terrorism, or some other sudden, unexpected or unusual incident. If your Temecula rental property was damaged from one of these aspects, you might be able to deduct a portion of your loss. The amount that is deductible is determined by how much of your property was damaged, as well as by how much of the loss your insurance covered.

Would you like to learn more from Realevate Specialists about our Temecula property management services? Please contact us online or call our Mission Valley office at 858-997-2100 or our Temecula office at 951-461-0100 for more information.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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