Year-End 2024: Tax Moves for Rental Property Owners
Year-End 2024: Tax Moves for Rental Property Owners
The last few months of the year are when proactive rental property investors take meaningful tax action. Unlike wage income, which is largely fixed once earned, rental property owners have real levers to pull before December 31 that can significantly reduce what they owe.
Accelerate Deductible Repairs
Any repair or maintenance work completed and paid for by December 31 is deductible in 2024. If you’ve been putting off painting, replacing a water heater, or fixing known issues — getting them done before year-end moves the deduction into the current tax year. Coordinate with your property manager on timing.
Consider a Cost Segregation Study
If you purchased or significantly renovated a property worth $300,000+ in 2024, a cost segregation study commissioned before year-end can generate substantial depreciation deductions on your 2024 return. The study typically takes 2-4 weeks, so November is the window to start.
Prepay Next Year’s Expenses
Certain expenses for 2025 services can be prepaid and deducted in 2024. Property insurance premiums for 2025, property management retainer fees, and subscription services may qualify. Confirm with your CPA which expenses are deductible when paid versus when incurred under your accounting method.
Review Your Depreciation Schedule
Work with your CPA to confirm your depreciation schedule is complete and accurate — including any capital improvements made during the year. Improvements must be capitalized and depreciated, not expensed, but ensuring they’re on the schedule and depreciating correctly is worth a year-end review.
Evaluate a 1031 Exchange
If you sold a property in 2024 and used a 1031 exchange, confirm your 180-day identification deadline and ensure your replacement property is on track to close in time. Missing the deadline triggers the full tax liability.
Book a year-end strategy call with Equity on Repeat — we help investors make smart moves before the clock runs out.