Tax season is here! And with it, the complicated task of figuring out how much you owe in taxes on your investment property. If you're a renter or landlord, it's important that you know about rental property tax deductions 2021.

Here are some of the best tax deductions for landlords and renters alike:

1) Mortgage interest deduction: You can deduct the interest paid on loans used to buy your rental property and home mortgages up to $750,000. This applies even if there is more than one mortgage!

2) Interest deduction: You can also deduct any interest incurred from money borrowed and invested in your rental properties, such as a business loan or second mortgage.

3) Property taxes: You can deduct all of your property taxes plus half of your state, local and foreign income taxes from your rental properties.

4) Depreciation: Landlords can depreciate the cost of the property, including land and buildings, over 27 years.

5) Repairs: Not only are you allowed to write off the cost of fixing up your rental unit, but you can also deduct the expense from income reported on Schedule E for all loans secured by principal residences or second homes.

6) House cleaning service: This won't help you save on cleaning supplies but it will help ensure that you're not paying taxes on the fair market value of your furnished home or apartment. If you receive a cleaning service, you can deduct some of it from your taxes. Read more about the rental property tax deductions 2021

7) Advertising your rental property: Depending on how much effort you put into advertising your rental property, it may be partly deductible. It could be deducted as a business expense or as a "trade or business expense."

8) Section 179 deduction: If you purchased property to rent during the year, you may qualify for a depreciation deduction. This is called the Section 179 deduction.

9) Miscellaneous expenses: You may also deduct any reasonable and necessary expenses incurred while maintaining your rental property, such as insurance premiums paid in relation to managing the rental property or paying employees who help with tasks such as collecting and managing rents or doing maintenance work.

9) Travel expenses: Depending on your travel patterns, you may be able to deduct airfare, parking fees, taxi fares, and hotel costs incurred for property management.

10) Meals: You may deduct 50% of the cost of business meals or entertainment that is associated with managing your rental property. These deductions are subject to a "2% floor," which means that you can only use the deduction if you spend at least 2% of your adjusted gross income for such expenses.

11) Travel: If you travel frequently to visit and manage an investment property, it is reasonable to deduct the cost of those trips from rental income reported on Line 42, along with any work-related entertainment expenses related to the trip.

12) Broker commissions: If you are a real estate investor or broker and receive broker commissions on your rental property income, they are deductible but will only count towards the 2% floor.

13) Home office expenses: You can deduct 50% of the home office expenses related to managing investment properties. This includes home office furniture and supplies, broadband Internet service for phone and e-mail services if the internet is used as part of the workday, and any computer equipment purchased separately from a personal computer. You can also deduct any phone expenses related to the rental property, such as long-distance charges or calling cards.

14) Insurance: If you have renters insurance, you may deduct up to $100 per year of eligible expenses in order to maintain a home insurance policy on the investment property. This deduction can also be claimed as an adjustment to income on Line 29 of your 1040 form.

15) Dues and subscriptions: You can deduct around $500 each year for the cost of managing your rental property. For example, if you subscribe to a news service or pay for a membership with multiple publications related to real estate investing, you might be able to take this deduction.

16) Automobile expenses: If you drive a car for work, you may be able to deduct an amount equal to the business use portion of your auto expenses from Line 12 of your Schedule A. This is an itemized deduction and must be claimed with other expenses.

17) Tax preparation: If you hire someone to prepare your taxes, it will generally count as a valid expense that can be deducted from rental income. You can also deduct interest paid on any Schedule A Preparer Fees (Form 8829) if those measured are related to the tax preparation services related to rental property businesses.

18) Travel: If you travel for business, you may deduct reasonable expenses related to your rental property. For example, if you are a real estate investor and travel regularly to check on rental property or meet with other investors or brokers who manage investment properties, these costs can be deducted.

19) Mortgage interests: If you use a home equity loan to purchase your home and this loan is secured by your home, you may be able to take deductions for the interest payments on the mortgage.

20) Business use of home: If you have a significant amount of rental income, you may be able to deduct business expenses related to homeownership from Schedule A. You can also claim a home-office deduction for any personal expenses that are related to your rental property.

21) Depreciation on rental property: You are allowed to depreciate rental property, including land and buildings, over 27.5 years.

22) Contractor expenses: If you hire contractors and service providers to complete improvements or maintenance on your investment properties, you may deduct those costs as the business expenses associated with managing the property.

23) HOA fees and taxes: If you live on the property or are responsible for paying homeowners' association fees, you may deduct these costs from Line 12 of Schedule A. You can also claim real estate taxes paid during the year, although a portion of those taxes may have been already claimed as otherwise deductible expenses.

These are the things that you need to know and keep in mind about the rental property tax deductions 2021.

For more information, you can visit Real Estate Calculators.