What Are the Top Tax Deductions for Landlords in St. Pete for the 2026 Season?
Tax season is usually the time of year when local landlords start checking their spreadsheets and realizing they might be missing out on their biggest tax break. It’s the number one topic we discuss with owners.
Some people have heard the term but aren’t sure how it applies to a condo in Downtown St. Pete versus a single-family home in Kenwood. Others think it’s only for "old" buildings.
In reality, depreciation is a massive tool. If you aren't using it, you are essentially giving away money.
What is rental property depreciation for St. Petersburg landlords?
Rental property depreciation is an income tax deduction that allows you to recover the cost of an income-producing property over 27.5 years to account for the wear and tear of the building. This isn't a bill you pay; it’s a non-cash expense that lowers your taxable income. Since land doesn't wear out, you only depreciate the value of the structure itself.
What items can I depreciate on my Florida rental home?
Beyond the building structure, you can depreciate capital improvements such as new roofs, HVAC systems, flooring, appliances, and permanent fixtures. While minor repairs are deducted all at once, these larger investments are spread out over several years.
In our local market, we often see these items qualify:
New Flooring: Replacing carpet with luxury vinyl plank between tenants.
Kitchen Upgrades: New cabinets, countertops, or energy-efficient appliances.
Major Systems: New AC units (vital for Florida) or water heaters.
Exterior Work: New windows or permanent fencing in neighborhoods like Old Northeast.
Does the Florida environment impact how I should view depreciation?
Yes, the intense Florida sun, humidity, and salt air in St. Petersburg often cause property components to age faster than in other climates, making it critical to track every improvement for tax purposes. Because the environment is so harsh on exteriors, local owners tend to replace roofs and paint more frequently.
For high-quality property management in St. Petersburg, Florida, Tourtelot Property Management helps owners document these frequent upgrades so they can be captured accurately on a depreciation schedule.
How do I tell the difference between a repair and an improvement?
A repair is a one-time fix that keeps the property in its current condition, while an improvement adds value, prolongs the property's life, or adapts it to a new use. If you patch a leak in a roof in Crescent Heights, that is a repair. You deduct the full cost this year.
If you replace the entire roof, that is an improvement. It goes onto your depreciation schedule. Mixing these up is a common mistake that can lead to headaches if you ever face an audit.
How do I start tracking depreciation for Tax Season 2026?
Successful tax seasons start with boring habits. You need a paper trail that shows exactly when an asset was placed in service and what it cost.
Save every contractor invoice: Don't just keep the total; keep the line items.
Log the "In-Service" date: This is the day the improvement was finished and ready for use.
Separate land and building value: Use your most recent St. Pete property tax assessment to find this ratio.
Keep a digital folder: Scan your receipts immediately. Thermal paper fades, and the IRS won't accept a blank slip of paper three years from now.
FAQs
Do I have to own an older property to claim depreciation?
Whether your rental is a brand-new build or a historic bungalow, you can start depreciating the structure the moment it is available for rent.
What happens to depreciation when I sell my rental?
The IRS may "recapture" some of that depreciation when you sell, but most landlords use a 1031 exchange to defer those taxes. Talk to a tax pro about your specific exit strategy.
Can I deduct the cost of my appliances all at once?
Usually, no. Appliances are typically depreciated over a 5-year schedule, though some "bonus depreciation" rules occasionally change.
Ready to Simplify Your Rental Property Taxes? Contact Tourtelot Property Management Today!
Depreciation is a powerful way to keep more of your rental income. But it requires clean books and a clear understanding of your property's history. We help St. Pete owners stay organized year-round so that by the time January rolls around, there’s no frantic searching for lost receipts.
Contact Tourtelot Property Management today to get your FREE Rental Property Analysis!
