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New Member
posted Feb 17, 2021 7:01:29 AM

Should the $3236 I spent repairing and maintaining my rental property be deducted from my taxable income? Whether I enter $3236 or $0, my refund does not change.

0 3 403
3 Replies
Level 15
Feb 17, 2021 7:12:37 AM

Your rental expenses are deducted from your rental income.  Both are reported on Schedule E of your tax return.

New Member
Feb 17, 2021 7:50:32 AM

Thanks for taking the time to answer. I get that the $3236 in repair costs reduces my rental income, but shouldn't that also reduce my taxable income and therefore my tax refund? I'm confused as to why my refund does not change based on my rental income.

Level 15
Feb 17, 2021 8:37:04 AM

Your deduction may be limited by the IRS' passive activity loss rules.  See page E-3 of this IRS reference:

https://www.irs.gov/pub/irs-pdf/i1040se.pdf