Landlord Tax Deduction Calculator 2026
Landlords often leave $3,000-8,000 per property in tax deductions on the table. This tool stacks the seven most-missed rental property deductions for 2026 — mortgage interest, depreciation, insurance, repairs, property management, travel, and home office — and computes estimated tax savings at your marginal rate.
The Seven Most-Missed Landlord Deductions
(1) Depreciation — non-cash deduction of building cost ÷ 27.5 years. (2) Mortgage interest — full deduction on rental property. (3) Insurance + property tax. (4) Repairs vs improvements — repairs deducted now, improvements depreciated. (5) Property management fees. (6) Travel to property (mileage at $0.67/mile 2026). (7) Home office for rental admin.
Why Depreciation Is The Killer Deduction
Depreciation is non-cash but fully deductible. A $275K building basis generates $10,000/yr depreciation for 27.5 years. Most landlords forget to add closing costs (title, attorney) to basis — adding $5K-15K. Cost segregation studies can accelerate first-5-year depreciation by 30-40% by reclassifying personal property and land improvements to 5/7/15-year schedules.
Passive Loss Rules to Know
If net rental income is negative, the loss is 'passive' and can only offset other passive income — UNLESS your MAGI is under $100K and you actively manage (then $25K loss allowed). Above $150K MAGI, passive losses suspend and carry forward to future years. Real estate professionals (750+ hours/yr) bypass this limit entirely.
Source: IRS Publication 527 (Residential Rental Property) 2026, IRS Topic No. 425 (Passive Activities). Last updated: May 2026.