Q: Can the landlord claim their residents as dependents for Income Tax purposes?
A: No, darn it. The following is my checklist of things to consider when getting together your rental property information for your income tax advisor. Please consult you tax advisor as to what applies to your tax return. If you are working with a professional property manager some of this information is gathered for you as part of their services.
Q: What are some of the items I should include in my gross rental revenue
A: All monies collected from renters (and kept). This may include:
• Base rental rate
• Cleaning fees (cleaning expenses are deducted in expenses)
• Parking fees
• Amenity fees
• Pet fees
• Any portion of a security deposit that you keep (e.g.: funds applied to unpaid rent)
Q: What can I deduct from rental income?
A: Documented expenditures paid out during the tax period directly related to the property or rental activities during the time the property is a rental. Some items such as depreciation and/or amortization expenses may also be deductible. Restrictions apply on deductions, so be sure to check with your tax advisor. Items to consider include:
Investment expenses
• Property taxes
• Property insurance
• Hurricane/wind/flood insurance
• Liability insurance
• Mortgage interest
• Private mortgage insurance (PMI)
• Refinance and/or closing fees
• Homeowner’s Association
• Dues Special assessments (may be amortized under capital improvements) Travel expenses to attend meetings
• Operating Expenses
• Utility bills, including power, gas, water/sewer, phone, cable/satellite TV service, Internet service, etc.
• Housekeeping expenses
• Expenses incurred to repair damages
• Out-of-pocket payments/deductibles for insurance claims
• Maintenance expenses, including pest control, lawn and garden upkeep, preventative maintenance, etc.
• Extra compensations to renters, housekeepers, maintenance (including holiday gifts/bonuses) Limits apply
• Linens and linen cleaning services (furnished rentals)
• Supplies, including paper towels, toilet paper, cleaning supplies, etc.
• Travel expenses to your rental property to do maintenance (must be well documented)
• Meals while you are on maintenance trips
• Property management fees and commissions

Home office expenses
• This includes computer equipment, furnishings, utility bills, etc. based on the percentage of business use vs. personal use (usually a portion based on the percentage of square footage of your home office—for example, if your home is 2,000 square feet and you have a 200-square-foot home office that you use solely for your vacation rental business, then 10 percent of your household expenses may be tax deductible). Be sure to check with your tax advisor if your home office qualifies as a deduction.

Advertising Expenses
• Your ads on rental websites or advertising venues
• Business cards and other printing costs related to your rental business
• Website building and hosting expenses business purposes only
• Photography, virtual tours, copywriting services

Capital Improvements and Amortized Items
• Improvements on your rental property
• Furnishings and décor for furnished rentals
• Depreciation deductions , limits apply
• Tools (hammers, saws, etc.) used in repairing your rental property Cameras, computers, cell phones, and other equipment necessary to run your rental business

Other Expenses
• Checking account and credit card administrative fees (business purposes only)
• Postage for mailing contracts, directions, security deposits, etc.
• Legal fees
• Delivery of the newspaper for the town your property is located
• Income tax preparation
• Educational expenses—seminar attendance and/or books about landlording