All of the following are deductible rental expenses, EXCEPT:

Question

Cleaning of common areas.
Real estate taxes.
Repairing, but not replacing a roof.
The value of the owner's labor.

Answer 1

The correct answer is "The value of the owner's labor."

While cleaning of common areas, real estate taxes, and repairing (but not replacing) a roof are all considered deductible rental expenses, you generally cannot deduct the value of your own labor as an expense for rental property. Labor performed by the owner is not deductible; you can only deduct costs for paid labor or services rendered by others.