10 Common Landlord Tax Deductions You Should Know in 2025

If you’re a landlord or rental property owner in Fairfax, Virginia, knowing what expenses you can deduct on your taxes can make a big difference in how much money you keep every year. Rental properties come with many costs, but luckily, many of these costs are tax-deductible if you keep good records and work with the right professionals.

For 2025, here’s an easy-to-understand breakdown of the top 10 landlord tax deductions you can claim. Plus, we’ll explain why working with a CPA in Fairfax who specializes in tax and accounting services is one of the smartest decisions you can make. 

1. Mortgage Interest: The Biggest Deduction

When you buy a rental property with a mortgage, the interest portion of your monthly payment can usually be deducted from your rental income. This can add up to thousands of dollars saved, especially in the early years of your loan when interest is higher.

Why this matters: Mortgage interest often represents the largest deductible expense for landlords. Make sure you collect your mortgage statements (IRS Form 1098) and share them with your CPA to claim this deduction correctly.

2. Property Taxes: Deduct What You Pay to Fairfax County

Property taxes paid on your rental property are fully deductible. Whether you pay quarterly or annually, keep your receipts or tax bills to include these costs.

How this helps: Property taxes in Fairfax and surrounding areas can be significant. Claiming this deduction reduces your taxable rental income dollar-for-dollar, lowering the amount of tax you owe.

3. Depreciation: Writing Off Property Wear and Tear

Even if your property appreciates in value over time, the IRS allows landlords to depreciate the building (but not the land). Depreciation spreads the cost of your property over 27.5 years, reflecting its gradual wear and tear.

How it works: For example, if your building’s value is $275,000, you could deduct $10,000 annually ($275,000 ÷ 27.5 years) as a non-cash expense. This lowers your taxable income without costing you anything out of pocket each year.

4. Repairs and Maintenance: Immediate Deduction for Fixes

Fixing leaks, patching drywall, repainting walls, or repairing appliances can be deducted in full during the year you pay for them. These are essential for keeping your rental safe and livable.

Important distinction: Repairs are deductible immediately, but improvements (like adding a new roof or remodeling a kitchen) must be capitalized and depreciated over several years.

5. Insurance Premiums: Protecting Your Investment 

Landlord insurance, including fire, flood, liability, and theft coverage, is deductible. This insurance protects you against many risks that come with renting out property. 

Tip: Keep annual statements from your insurance company to support your deduction. 

6. Utilities: Deduct What You Pay on Behalf of Tenants

If you cover utilities like water, electricity, gas, or trash removal, these expenses are deductible. Sometimes, you may cover utilities between tenants or for common areas.

Note: If tenants pay utilities directly, you cannot deduct those costs.

7. Property Management Fees: Paying Others to Help You

If you hire a property manager to handle day-to-day operations or tenant relations, their fees and commissions are deductible. This also includes charges for finding tenants or eviction services.

Benefit: These fees reduce your taxable rental income and make managing your property easier.

8. Legal and Professional Fees: Deduct Services You Pay For

Any fees you pay to professionals such as CPAs, attorneys, or accountants related to your rental business are deductible. This includes tax preparation fees, legal advice for leases or evictions, and accounting services.

Why it matters: Investing in professional help can save you money and headaches in the long run, especially during tax season.

9. Advertising and Tenant Screening Costs: Finding the Right Tenant

Advertising costs to find tenants, whether online or in print, are deductible. This also includes fees for credit checks, background screening, or application processing.

Keep records: Save invoices and receipts from ads and screening services.

10. Travel and Mileage: Deduct Trips Related to Your Rental

If you drive to your rental property for repairs, inspections, or meetings, you can deduct mileage at the IRS standard rate (67 cents per mile for 2025). Keep a detailed log of dates, miles, and purpose of each trip.

How to track: Use a mileage app or notebook to record your business travel and maximize your deduction.

Why You Need a CPA in Fairfax for Your Rental Property Taxes

Tax laws around rental properties can be complex, and missing deductions can cost you thousands. A CPA in Fairfax who specializes in tax and accounting services for landlords will help you: 

• Identify every possible deduction 

• Keep compliant with IRS rules 

• Organize your records efficiently 

• Plan to minimize future taxes 

Working with a local expert means you get advice tailored to Virginia and Fairfax tax regulations, something generic online tools can’t provide.

How to Stay Organized and Ready for Tax Season

• Keep receipts, invoices, and bank statements separate for your rental business. 

• Maintain a mileage log if you travel for your rental. 

• Set up a separate bank account for rental income and expenses. 

• Regularly review your expenses with your CPA throughout the year.

Being organized not only helps you save money but also makes tax filing less stressful. 

Final Thoughts

Owning rental property is a great way to build wealth, but taxes can eat into your profits if you’re not careful. Understanding these 10 common landlord tax deductions helps you keep more of your rental income.

If you’re searching for a Tax Advisor near Fairfax to assist with your tax and accounting needs, don’t wait. A qualified professional will help you maximize your deductions, avoid mistakes, and grow your rental business smarter.

Contact Raj & Associates Today! 

At Raj and Associates CPA PC, we specialize in helping Fairfax landlords with tax planning, accounting, and compliance. Whether you’re new to renting or an experienced investor, our expert team ensures you get the best tax savings possible in 2025.

Call us now for a consultation and start saving more on your rental property taxes!