Rental Income = Revenue generated from rental units during a fiscal year. This includes any deposit or last month rent collected from your tenants.
For more information on what we consider a current or capital expense, see Current expenses or capital expenses.
If you are modifying a building to accommodate persons with disabilities, buying an older building, or encounter other situations, see Capital expenses – Special situations.
Some expenses your incur are not deductible. For more information see Expenses you cannot deduct.
The following is a list of expenses that are deductible:
- Prepaid expenses
- Line 8521 – Advertising
- Line 8690 – Insurance
- Line 8710 – Interest
- Line 8860 – Legal, accounting, and other professional fees
- Line 8960 – Maintenance and repairs
- Line 8871 – Management and administration fees
- Line 9281 – Motor vehicle expenses
- Line 8810 – Office expenses
- Line 9180 – Property taxes
- Line 9060 – Salaries, wages, and benefits (including employer’s contributions)
- Line 9200 – Travel
- Line 9220 – Utilities
- Line 9270 – Other expenses
Any cost incurred to the renting of the units may qualify against the revenue generated as rental income.