You must report all your rental income on your taxes each year. This includes any kind of payment received for use of your property (aka rent payments), in addition to advance rent, security deposits, payments for lease cancellations, services received instead of rent, and other income. These income sources can add up fast on your taxes, especially if you own more than one rental property. Fortunately, landlords can deduct the expenses associated with their rental properties to lower their tax bill. Expenses may include loan interest, property tax, depreciation of the building, repairs and maintenance costs, mortgage interest, and more. Below we will list deductions you can take on your rental property.