The short answer
Rental income goes on Schedule E, minus your expenses: mortgage interest, property taxes, insurance, repairs, management and HOA fees, and depreciation. If expenses are more than rent, the loss may be limited depending on your income.
Last reviewed: October 2026
This page explains how taxes and reporting work. It isn't a recommendation to buy, sell or hold any investment.
Common deductions
- Mortgage interest and property taxes
- Insurance, HOA fees and utilities you pay
- Repairs and maintenance
- Property management, advertising and legal fees
- Travel to the property for rental business
- Depreciation of the building and improvements
Repair or improvement?
A repair keeps the property in working order and is deducted right away. An improvement makes it better, longer-lasting or adapts it to a new use, like a new roof, and is depreciated over time.
When losses are limited
Rental losses are generally "passive." If you actively take part in managing the rental, you may deduct up to $25,000 of losses against other income. That amount phases out between $100,000 and $150,000 of income. Losses you can't use carry forward.
Short-term rentals
- If the average stay is 7 days or less, different rules apply, and losses may be treated differently.
- If you provide hotel-like services, it may be a business on Schedule C, with self-employment tax.
- Rent your own home out for 14 days or fewer in a year, and that rent generally isn't taxable.
- Florida collects sales and tourist development taxes on most rentals of six months or less. Those are separate from income tax.
Official source: IRS Topic 414, Rental income and expenses.
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Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.