55 Pa. Code § 181.135 - Deductions from rental income
(a)
Expense deductions from rental income include:
(1) Necessary expenses paid for the
production or collection of the rental income.
(2) Real estate insurance costs related to
the rental property, whether or not the mortgage holder requires the
insurance.
(3) The interest portion
of a mortgage payment.
(4) A repair
which is an incidental correction to an existing structure, or to a piece of
equipment.
(b) Items such
as depreciation or depletion, personal expenses which are not related to the
rental income and capital expenditures are not allowable deductions. A capital
expenditure represents an expenditure for an addition or increase in the value
of fixed assets, and is subject to depreciation for income tax
purposes.
(c) Allowable expenses are
prorated if only a portion of the total property is designated for rent,
regardless of whether it is actually rented.
Notes
The provisions of this § 181.135 issued under section 403(b) of the Public Welfare Code (62 P.S. § 403(b)).
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