Looking to maximize your Denver rental property tax deductions? Our comprehensive checklist covers all eligible write-offs from mortgage interest to home office expenses that Denver property owners need to know for the upcoming tax season.
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Denver Rental Property Tax Write-Off Checklist: Don’t Miss These Deductions

Managing a rental property in Denver comes with its share of responsibilities, but it also offers significant tax advantages. Many property owners leave money on the table simply because they’re unaware of all the deductions available to them. Whether you’re handling a short-term vacation rental or a traditional long-term lease, understanding the tax benefits can substantially impact your bottom line.

At SimplifyRenting, we’ve created this comprehensive guide to help Denver property owners maximize their tax deductions and keep more of their rental income. Let’s dive into the complete checklist of write-offs you shouldn’t overlook this tax season.

Essential Mortgage and Property-Related Deductions

Your property’s financing and ownership costs typically represent your largest expenses—and fortunately, many are tax-deductible:

Mortgage interest payments remain one of the biggest deductions available to rental property owners. Unlike primary residences, rental properties have no cap on mortgage interest deductions. This means 100% of the interest you pay on your Denver rental property loan can be written off.

Property taxes paid to local Denver and Colorado authorities are fully deductible against your rental income. With Colorado’s property tax rates constantly changing, this deduction can be substantial.

Insurance premiums for your rental property offer another significant write-off. This includes landlord insurance, fire, flood, theft, and liability coverage—all necessary expenses for protecting your Denver investment.

Don’t forget about depreciation, which allows you to deduct the cost of your building (not the land) over 27.5 years. For many Denver property owners, this non-cash expense creates one of the largest tax benefits of owning rental real estate.

Operational Expenses You Can Deduct

Day-to-day property management generates numerous deductible expenses that can add up quickly:

All maintenance and repair costs are immediately deductible in the year you incur them. This covers everything from fixing leaky faucets to repainting, replacing broken windows, or repairing HVAC systems. Remember that major improvements are treated differently—they must be depreciated rather than immediately expensed.

Professional services like property management fees (including SimplifyRenting’s 20% commission), legal fees, accountant charges, and real estate professional consultations are fully deductible. If you’re using a full-service management company for your Denver short-term rental, these fees can represent significant write-offs.

Utility expenses that you pay as the property owner—water, electricity, gas, internet, cable TV, trash removal—are all deductible against your rental income. This is particularly relevant for short-term rental owners who typically cover all utilities.

Travel and Vehicle Expense Deductions

Many Denver property owners don’t realize they can deduct travel costs related to their rental activities:

Local travel expenses for property management, maintenance visits, and tenant meetings can be deducted using either the standard mileage rate or actual car expenses. Keep a detailed log of all rental-related trips around Denver to maximize this deduction.

If you own property in Denver but live elsewhere, you can deduct travel costs to visit and manage your rental property. This includes airfare, accommodations, and 50% of meals during these business trips. Just make sure the primary purpose of your travel is for rental property business.

Home Office and Business Deductions

If you actively manage your Denver rental property, consider these additional write-offs:

A home office deduction may apply if you use part of your home exclusively for managing your rental property business. This can include a percentage of your home’s expenses based on the square footage used for business purposes.

Business supplies, software subscriptions for property management, professional education related to real estate investing, and industry memberships are all deductible expenses that many property owners overlook.

Denver-Specific Tax Considerations

Denver rental property owners face unique local tax situations:

Short-term rental operators in Denver must collect and remit lodger’s tax (currently 10.75%) and pay an annual business license fee. While these aren’t deductions, the business license fee is deductible, and understanding these requirements helps you stay compliant with local regulations.

Colorado offers specific programs like energy efficiency tax incentives that can provide additional deductions if you make qualifying improvements to your rental property.

Don’t Miss These Commonly Overlooked Deductions

Even experienced property owners frequently miss these legitimate write-offs:

Advertising expenses for finding tenants, including online listing fees, professional photography, and marketing materials, are fully deductible. For short-term rental owners, this includes professional listing creation and photography services.

Cleaning services between guests (even though often passed through to guests as fees) represent deductible business expenses against that income. The same applies to landscaping, snow removal, and other property maintenance services.

Start-up costs when you first begin renting your property can be deducted or amortized, including initial repairs, furnishings for short-term rentals, and setup fees.

Take Action Before Tax Season

Don’t wait until the last minute to organize your rental property tax strategy. Here’s what you should do now:

Start by creating an organized system for tracking all rental-related expenses. Digital accounting software can help categorize and store receipts automatically.

Consider consulting with a tax professional who specializes in real estate investments. The tax code constantly changes, and a professional can ensure you’re taking advantage of every available deduction while staying compliant.

SimplifyRenting helps our Denver property owners maximize their investment returns—including providing documentation that makes tax time easier. Let us help you not only increase your rental income but also optimize your tax position.