Payments and Ownership

• A large portion of the monthly mortgage payment on your rental property goes toward interest. You can deduct the cost of paying that interest off your taxes, to help offset the cost. You can use the depreciation tax deduction to help offset the cost of buying an investment property. With depreciation, you deduct a portion of the cost of the rental each year. If you rent out a condo, you can also deduct the cost of paying annual or monthly condo dues.
  
  

Repairs and Maintenance

• You can deduct the full cost of making a repair to your rental in the current tax year. Any repairs you deduct must have had a reasonable cost and been an ordinary home repair; for example, repairing a broken window, replacing a cracked door jamb or painting the interior count as tax deductions. If you hire anyone to complete the repair, you can deduct the cost of the labor. You can also deduct the cost of paying a salary to a full- or part-time maintenance staff.
  
  

Running the Business

• You can deduct the cost of doing business in your home through the home office deduction. Most spaces used for business count, for both renters and homeowners. You can deduct the cost of traveling to your rental property. According to NOLO, as of 2011, you can deduct 51 cents for every mile traveled. You can also deduct airfare, hotel bills, mileage and other expenses if you have to travel a long distance to work on or show your rental property.
  
  

Insurance

• You can deduct almost every type of insurance you pay for your rental properties on your taxes. For example, if you pay theft, fire and flood insurance on the rental property itself, you can deduct the cost of paying the premiums. If you carry landlord's liability insurance, you can deduct that as well. If you have employees who work on your rental property, you can deduct the cost of providing health and worker's compensation insurance.