Looking to maximize your Denver rental property tax savings? Discover our comprehensive guide to tax-deductible expenses for short-term rental owners in Denver and the foothills communities.
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The Ultimate List of Tax-Deductible Rental Property Expenses

As a short-term rental property owner in Denver or the surrounding foothills communities, understanding your tax deductions can significantly impact your bottom line. Many property owners leave money on the table by missing legitimate deductions that could reduce their tax burden. At SimplifyRenting, we want to help you maximize your rental income while minimizing your tax liability.

Here’s our comprehensive guide to tax-deductible expenses for your Denver rental property.

Essential Tax Deductions for Rental Property Owners

The IRS allows rental property owners to deduct ordinary and necessary expenses for managing, conserving and maintaining their rental property. Let’s break down the major categories:

Property Management Fees

The 20% commission you pay to SimplifyRenting for managing your short-term rental is fully tax-deductible. This includes all our services from listing creation and dynamic pricing to 24/7 guest support and maintenance coordination. Since these fees directly relate to generating rental income, the IRS considers them legitimate business expenses.

Property Maintenance and Repairs

Regular maintenance keeps your Denver property in top condition for guests and preserves your investment. Deductible maintenance expenses include:

Plumbing repairs, electrical fixes, HVAC servicing, appliance repairs, painting, landscaping, snow removal (especially important in our Colorado winters), and general property upkeep. Remember that while repairs are fully deductible in the year they’re paid, major improvements must be depreciated over several years.

Cleaning and Turnover Costs

While guests pay cleaning fees directly, any additional cleaning expenses you incur as the property owner are tax-deductible. This includes deep cleaning services, carpet cleaning, window washing, and other specialized cleaning needs that fall outside standard turnover cleaning.

Supplies and Amenities

The supplies you provide for your rental property qualify as deductible expenses. This includes:

Toilet paper, paper towels, cleaning supplies, coffee, tea, and other consumables. The linens, towels, kitchenware, and other durables you purchase for your rental are also deductible, though items with longer useful lives may need to be depreciated rather than deducted entirely in one year.

Utilities and Services

All utility costs associated with your rental property are tax-deductible, including:

Electricity, gas, water, sewer, trash collection, internet, cable or streaming services, security system monitoring, and pest control. For properties that serve as both personal residences and rentals, you’ll need to allocate expenses based on the percentage of time the property is rented.

Insurance, Taxes, and Interest Deductions

Property Insurance

Your rental property insurance premiums are fully deductible. This includes landlord insurance policies and any additional coverage specifically for short-term rentals. If you use SimplifyRenting’s services, we ensure proper claims management for any property damage, and the costs associated with this service are also deductible.

Property Taxes

Denver and surrounding foothills communities have varying property tax rates, but all property taxes paid on your rental property are deductible expenses. This represents one of the larger deductions available to rental property owners.

Mortgage Interest

If you have a mortgage on your rental property, the interest portion of your payments is tax-deductible. This often represents a significant deduction for property owners, especially in the early years of a mortgage when interest makes up a larger portion of payments.

Business Expenses and Professional Services

Travel Expenses

Travel expenses related to your rental property are deductible. This includes trips to your Denver property for management, maintenance, or improvement purposes. If you live outside the area and travel to check on your property, keep detailed records of your expenses and the business purpose of each trip.

Home Office Deduction

If you manage aspects of your rental business from home, you may qualify for the home office deduction. This requires a space in your home used regularly and exclusively for rental business activities.

Professional Services

Fees paid to professionals are deductible, including:

Accountant and tax preparation fees, legal fees related to your rental property, real estate professional consultations, and property evaluation services.

Advertising and Marketing

While SimplifyRenting handles most marketing for your property, any additional advertising expenses you incur are tax-deductible. This might include professional photography or virtual tours you commissioned outside our services.

Depreciation: The Valuable Long-Term Deduction

Depreciation allows you to deduct the cost of buying and improving your rental property over time. Residential rental properties are depreciated over 27.5 years. This applies to:

The building itself (not the land), capital improvements like a new roof or renovation, appliances, furniture, and other assets with a useful life of more than one year. Depreciation often represents one of the most significant tax benefits of property ownership.

Start Maximizing Your Rental Property Tax Deductions

Understanding and properly documenting your tax-deductible expenses can save you thousands of dollars each year. At SimplifyRenting, we help Denver property owners not only maximize their rental income through our comprehensive management services but also maintain proper documentation for tax purposes.

Ready to ensure you’re claiming every legitimate deduction for your rental property? Get a FREE Rental Analysis today to see how our professional management services can help boost your profits while keeping your tax liability in check.