Residential Rental Real Estate: Part 2


You are able to write off the expenses associated with your Residential Rental(s). These expenses are taken on Schedule E, which was discussed in Part 1 of this series. While you are probably very familiar with many of the valid expense write offs, you may overlook some expense items. CPA Accounting and Tax Solutions can handle the accounting and tax issues for you. We can help you with the initial expense accounting set up, or handle your complete rental accounting and tax related functions.

We recommend you handle the financial transactions for your Rental in a separate bank account. As an alternative, you can pay all your expenses on a credit card used only for this purpose. You will get a detailed year end statement that makes wonderful documentation. Following is a list of the most common expenses you may incur in operating your rental:

  • Insurance, including Property and Liability coverage
  • Utilities, including power, water, and sewer
  • Property taxes
  • Automobile expense (limited to the use of your auto for use in operating the Rental)
  • Cleaning
  • Repairs
  • Mortgage Interest
  • Commissions
  • Advertising

This list is not intended to be an exhaustive list of possible deductible expenses. You may, for example, be entitled to a portion of your cell phone, and/or internet expenses. We are always available for a free consultation on your rental or any other tax issues.

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