• Rental property can be a source of tax deductions for landlords.apartment for rent image by dead_account from Fotolia.com
  
  In addition to rental income and the possibility of the value of her property increasing, a landlord can also take advantage of several income tax deductions. These deductions can range from interest payments to the expenses of running a home or traditional office. Keeping careful records and documentation is the key to claiming deductions and preventing, or surviving, an audit.
  
  

Business Travel

• Landlords who have to travel in order to show and maintain their properties, as well as interact with their tenants, can deduct many of their travel-related expenses from their income. Landlords should keep careful records of their expenses while traveling and be prepared to show proof in the form of receipts and other documentation if the Internal Revenue Service questions their travel deductions.
  
  

Cost of Doing Business

• A landlord can deduct expenses related to the running of her business. This can include office space and office equipment, even if the office is in the landlord's home. It can also include wages and other payments to employees, contractors, and professionals, such as lawyers and accountants, who perform work related to a landlord's business.
  
  

Repairs, Depreciation and Interest

• Reasonable repairs to rental property can be deducted from a landlord's income in the year in which the repair work is performed. Improvements, such as a new patio, are not deductible, as the IRS regards an improvement as something that adds value to a property. Landlords can, however, deduct any depreciation of their property's value from their taxes. A landlord can also deduct any interest paid on mortgages or loans taken out to repair or improve the property.
  
  

Insurance, Damage and Theft

• Insurance premiums for rental property are all tax-deductible, as are premiums for various types of insurance benefits for a landlord's employees. Losses due to theft, fire or other types of damage may also be tax-deductible, though the amount will vary depending on both the circumstances as well as the landlord's insurance coverage.