Rental income tax adjustment

I’m new to REI and I need expert advice.
What’s a good % estimate for adjusted rental income due to tax deductions?
What tax deductions are allowed for long term rental property compared to short term/vacation property?


I am not sur what you are asking in your first question, so I won’t try to address it. As to your second question about deductions, the biggest 2 that come to mind are repair expenses and depreciation. Neither of those are allowed on a second residence.


Rental property id depreciated over 27.5 years that means in a full year about 3 1/2 %. Depreciation is figure on the building(~80%) not the land (~20%).

On rental property any expense that is needed to produce that income may be deductable. Large capital expenditure may need to be depreciated over some lenght of time.

On your vacation homes mortgage interest can be deducted but not depreciation.

Please do not make your decisions on depreciation but on the cash flow of the property.

Assuming that by “tax deductions”, you are really asking about operating expenses, use a 50% expense factor until you have better estimates to work with.