REAL ESTATE PROFESSIONALS  report their rental income and expenses  from rental activity on  IRS Schedule E like any investment property owner. As a Real Estate Professional, as defined by the IRS,  you may be deduct expenses over the standard limit of $25,000. THERE ARE SPECIFIC RULES TO QUALIFY. Following is a brief summary of these rules. 
CONSULT YOUR TAX ADVISOR FOR MORE INFORMATION

Full-time real estate professionals may be able to deduct 100% of their rental property tax losses from their income. That's not true for people who spend less than full time as real estate professionals or rental property owners. Details are spelled out in the Internal Revenue Code 469(c)(7). 

If you are a real estate agent or broker, a landlord, a professional property manager, a developer or are in the construction business, then the IRS considers you to be a Real Estate Professional. SUBJECT TO certain rules

1. More than half of the taxpayer's personal services in all businesses must be in real property businesses. A real property business is real property development, construction, acquisition, conversion, rental, management, leasing, or brokerage

2. The taxpayer must spend more than 750 hours a year in real property trades or businesses.

NOTE: For time to be counted in either of the above two tests, the taxpayer must materially participate in the activity.

3. The taxpayer must materially participate in each rental real estate activity unless he or she has filed an election to group all rental real estate activities as one (for purposes of materially participating).

It may be a good idea to get a Real Estate License.

COMMON LANDLORD TAX DEDUCTIONS

1. Interest. Mortgage Interest for the investment property. Other interest from Credit Cards related to the Rental Activity. It is a good record keeping practice to have both personal and business credit cards (for the rental business).

2. Advertising: If you advertise your rental for rent, those costs are deductible.

3. Depreciation. Residential rental property must be depreciated over 27.5 years. For example, if you pay $200,000 for a home, you expense each year is $7272 per year. It is a "paper loss" that shields your income. A typical homeowner does not have this available to them. IF YOU OCCUPY 1/2 or any portion of the home, you deduction is reduced by the proportion you occupy (in a 2 family, 50% to you, 50% to the investment)

4. Professional Fees:  The costs you pay to an attorney for eviction, a management company, engineer, CPA etc are deductible as they relate to the rental. FOR REAL ESTATE PROFESSIONALS, Realtor Fees, Board Fees, Continuing Education expenses and more.

5. Home office: You can deduct a home office or workshop used to manage your rental property. Your garage may be storage for your tractor to cut the grass or to hold furnishings you supply.  Certain requirements must be met, but are standard.

6. Insurance: Your costs to insure the rental property are deductible. ALSO, depending on how you structure your rental business, you may decide to cover your life and medical insurance as part of the rental business. Where medical insurance is not deductible when you work (and pay ) for medical insurance, structuring your rental property as a Limited Liability Company (LLC) may permit you to deduct these costs for you and your family. CONSULT YOUR TAX ADVISOR. 

7. Auto: Your auto expenses are deductible as they relate to your rental business. You may travel back and forth collecting rent, looking at the house , doing yard work etc. Keep records. You may also elect to determine that a portion of the auto is related to the rental activity, the rest personal use - 25% rental activity and 75% personal use, as an example. The expenses are then deducted as to this ratio. You can deduct ordinary and necessary auto and travel expenses related to your rental activities, including 50% of meal expenses incurred while traveling away from home. You generally can either deduct your actual expenses or take the standard mileage rate. You must use actual expenses if you used more than four vehicles simultaneously in your rental activities (as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle. Consult your tax advisor.

8. Travel: Portions of a trip to see your far away property may be deductible. Limitations apply.

In addition you may also incur charges for:

• Cleaning and maintenance
• Commissions
• Repairs
• Supplies
• Taxes
• Utilities
• Private mortgage insurance (PMI)
• Landscaping, Snow Removal, Trash Removal
• Amounts paid to employees or independent contractors
• Condo fees

All of which are deductible as they relate to your rental property.