What Tax Deductions Can Houston Landlords Claim?

Rental property offers some of the best tax benefits in the entire tax code. Here are the key deductions for Houston landlords.

• Depreciation: Deduct the cost of the building (not land) over 27.5 years. This paper loss often eliminates taxable rental income.
• Mortgage interest: 100% deductible on investment property loans.
• Property taxes: Fully deductible as a rental expense (no $10K SALT cap for investment properties).
• Insurance premiums: Landlord, flood, and umbrella policy premiums.
• Repairs and maintenance: Plumbing, HVAC, painting, appliance repairs — all deductible in the year incurred.
• Property management fees: 8%–10% of rent paid to a Houston PM company.
• Travel expenses: Mileage, flights, and lodging when traveling to manage Houston properties.
• Professional services: Accountant, attorney, and real estate professional fees.

Bottom Line

Depreciation alone can shelter thousands of dollars from taxes annually. Work with a CPA experienced in real estate to maximize every deduction — the tax savings often exceed the cash flow on Houston rentals.