Without the deduction for the house, our taxes about ate us alive.

Don't we already deduct maintenance costs from our rental income, and depreciate large expenditures separately?

If they fit the definition of a "real estate professional" not only is one allowed to deduct ALL expenses in the current year and will no longer have to carry over losses that exceed their income over the years as with passive income, but, if married and filing joint, they may even deduct their expenses against their spouse's income as well.

I find it's more commonly employed for individuals who are in a higher tax bracket where PMI is not tax deductible, but mortgage interest is.

If you purchase a home for let's say $200k, then spend another $50k in rehab costs, then rent it out, can the rehab costs be deducted against your rental income?

I then deducted $5600 from the gross to account for utilities not paid by the tenants and other misc. expenses.

Check with your accountant but you might be able to deduct Cape visits as a business expense.

For most folks, filing Sch E is the simplest and affords the same deduction.

If you have properties in the same geographic area but the property in question was not placed into service (advertised) for rent in 2015, then you can deduct operating expenses.

Deductible of $1,000 with Lloyds Insurance for Coverage.