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Rental property tax deductions checklist (US and Canada)

The rental expenses landlords commonly deduct, and the ones that trip people up, with the matching Schedule E line in the US or Form T776 line in Canada.

Updated October 19, 2026 · by Tidy Landlord

Use this as a year-end checklist: go down the list, tick what you had, and pull each total from your books. If an item is missing receipts, now is the time to find them.

US checklist (Schedule E, Part I)

In most cases you can deduct the expenses of renting your property, such as maintenance, insurance, taxes and interest, in the year you pay them (IRS Pub. 527).

Advertising for tenants (line 5).
Auto and travel (line 6): local transportation to collect rent or to manage, conserve or maintain the property, using actual expenses or the standard mileage rate (70 cents a mile for 2025, per Pub. 527). Trips between your home and a rental are generally nondeductible commuting unless your home is your principal place of business. Keep a mileage log.
Cleaning and maintenance (line 7) and commissions (line 8).
Insurance (line 9). If you prepay more than a year, deduct only the part for each year.
Legal and other professional fees (line 10), including fees to prepare Part I of Schedule E.
Management fees (line 11).
Mortgage interest paid to banks (line 12) and other interest (line 13). Points are prepaid interest and are generally deducted over the loan term, not all at once.
Repairs (line 14) and supplies (line 15).
Taxes (line 16), such as real estate taxes on the rental.
Utilities you pay (line 17).
Depreciation (line 18): the building over 27.5 years; appliances, carpets and furniture over 5 years.
Other (line 19): for example condo or HOA dues for maintaining common elements, and items expensed under the de minimis safe harbor (up to $2,500 per invoice or item without an applicable financial statement, per the IRS tangible property FAQ).
Vacant periods: ordinary expenses while the property is held out for rent are deductible, but lost rent isn't.

US: not deductible as a current expense

Improvements (capitalize and depreciate them instead), including condo special assessments for improvements.
Mortgage principal payments.
The value of your own labor.
Costs of getting a mortgage such as mortgage commissions, abstract fees and recording fees, which are added to your basis.
Uncollected rent if you use the cash method.
Interest on refinanced money used for non-rental purposes.

If the result is a loss, the passive activity rules may limit it; see Step 8 of our Schedule E bookkeeping guide.

Canada checklist (Form T776)

You can deduct any reasonable expenses you incur to earn rental income. Current expenses are deducted in the year incurred; capital expenses are deducted over several years as capital cost allowance (CRA Guide T4036).

Advertising (8521), including finder's fees.
Insurance (8690) for the current year.
Interest and bank charges (8710): interest on money borrowed to buy or improve the rental, and interest paid to tenants on rental deposits. Mortgage application, appraisal, processing, insurance, guarantee, broker and financing legal fees are deducted at 20% a year over five years.
Office expenses (8810) such as stationery and stamps.
Professional fees (8860): legal fees for leases or collecting rent, bookkeeping, audits, accounting and tax preparation.
Management and administration fees (8871).
Repairs and maintenance (8960): labour and materials.
Salaries, wages and benefits (9060) for staff, including your employer CPP/QPP and EI contributions.
Property taxes (9180) and utilities you pay under the lease (9220).
Travel (9200) and motor vehicle expenses (9281), only under the one-property or two-or-more-properties conditions in T4036.
Other expenses (9270): condominium fees, landscaping (in the year paid), lease cancellation payments (prorated) and a phone used for the rentals.
Disability-related modifications such as ramps or hand-activated door openers can be deducted in the year paid instead of being capitalized.
Capital cost allowance (9936) on the building (often Class 1, 4%) and appliances or furniture (Class 8, 20%).

Canada: not deductible

Land transfer taxes (added to the property's cost).
Mortgage principal.
Penalties on a notice of assessment or reassessment.
The value of your own labour.
The purchase price and legal fees to buy the property (capital), and repairs to put a newly bought used property into rentable condition (also capital).
Interest on refinanced money used for personal purposes.

Current or capital? T4036 asks whether the expense gives a lasting benefit, improves the property beyond its original condition, or replaces a separate asset. Painting the exterior of a wooden house is current; putting vinyl siding on it is capital. Replacing a refrigerator is capital, because it's a separate asset; rewiring is usually current if it doesn't improve the property beyond its original condition.

Quebec: you claim the same kinds of expenses on Revenu Québec's form TP-128-V, filed with your Quebec return. See our T776 guide for the Quebec notes.

Frequently asked questions

Can I deduct my whole mortgage payment?

No. In both the US and Canada only the interest is deductible; principal repayments are not. Use your lender's year-end statement for the interest figure.

Is a new roof deductible right away?

In the US, Pub. 527 lists a new roof as an improvement, which is capitalized and depreciated. In Canada it depends: CRA's T4036 treats repairs that only restore the property to its original condition, such as re-shingling leaking patches, as current expenses, while work that improves it beyond its original condition is capital.

Can I deduct trips to my rental property?

US: local trips to collect rent or manage and maintain the property can be deducted, but travel between your home and the rental is generally commuting unless your home is your principal place of business. Canada: with one property you generally can't deduct trips to collect rent; with two or more properties at different sites you can deduct trips to collect rent, supervise repairs and manage.

Sources

This guide is general information to help you organize your records. It is not tax, legal or accounting advice, and rules and amounts change every year. Confirm how they apply to you with a qualified tax professional or the official sources linked above before you file.

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