Vacant rental properties don’t have to mean lost money. At Good Life Property Management, we help landlords across Southern California manage their investments wisely. Want to learn how to maximize deductions, reduce stress, and get your property rented faster? Schedule a call with our team and make the most of your rental.
Key takeaways
- Vacant properties can still offer tax deductions if you’re actively trying to rent them.
- You must prove your intent to rent and keep clear documentation.
- Repairs, maintenance, and some travel costs may be deductible.
- Depreciation continues even when the property is vacant.
- Always consult a tax professional for your specific situation.
Table of Contents
Vacant Properties Can Still Be Deductible
Just because your rental property is sitting empty doesn’t mean it’s a total loss. The IRS still allows landlords to deduct certain expenses during periods of vacancy—as long as you’re actively trying to rent it.
What You Can Deduct
If you intend to rent the property and are making a genuine effort to do so, you can still deduct:
- Mortgage interest
- Property taxes
- Insurance
- Repairs and maintenance
- Depreciation
- Marketing costs (listing fees, photos, signage)
- Travel expenses related to property upkeep or showings
What the IRS Looks For
You need to demonstrate that you’re making a continuous and bona fide effort to rent the home. That means:
- Keeping the property rent-ready
- Documenting listings, viewings, or outreach
- Hiring a property manager or using listing platforms
Common Mistakes to Avoid
- Taking deductions while doing major renovations not intended for renting soon
- Holding off on marketing the property
- Neglecting to track your efforts or expenses
If your property isn’t rent-ready or you take it off the market, the IRS could disallow deductions for that time period.
What About Depreciation?
Even when the property is vacant, depreciation doesn’t stop. As long as it’s still in service (intended for rent), you can continue claiming this valuable deduction.
Pro Tip: Set Up a Plan
Keep records of listings, inquiries, repairs, and conversations with property managers. If audited, this shows clear intent.
We're Here to Help
Need help managing a vacant rental? Good Life Property Management helps owners reduce vacancy and stay compliant with tax rules. At Good Life Property Management, we believe that life should be enjoyed, not spent sweating the small stuff. That’s why we set out on a mission to make property management easy. We care about you, your property, and your tenant. And we do it all so you can Live the Good Life.
Schedule a call to speak with one of our Good Life experts and discover how we can help with your property.
FAQs About Vacant Rental Property Tax Deductions
1. Can I deduct expenses for a property that isn't rented yet?
Yes, if you’re actively trying to rent it and the property is available, you can typically deduct related expenses.
2. Is depreciation allowed during vacancy?
Yes, depreciation continues as long as the property is still available for rent.
3. What kind of proof should I keep?
Save your listings, repair invoices, mileage logs, and any records showing that the property was being marketed.
4. Can I deduct travel expenses?
Yes, if they are directly related to the management or maintenance of the property.
Resources and Useful links:
Steve Welty
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