Which of the following could be deducted as expenses from annual income taxes on an investment property?

• A. Advertising for tenants
• B. Insurance premiums
• C. Painting a structure
• D. Property taxes

Answer: (C)

The main idea is that rental-property expenses that are ordinary and necessary to operate the property can be deducted from rental income in the year. Painting a structure falls into the maintenance/repair category. It keeps the property in good condition and does not add significant value or extend the property's life—so it’s treated as a current expense that you can deduct now. If the painting were part of a larger improvement that adds value or extends life, it would instead be capitalized and depreciated over time.

Advertising for tenants, insurance premiums, and property taxes are also deductible as ordinary and necessary rental expenses, but painting a structure is a classic example of a deductible maintenance expense that doesn’t rise to a capital-improvement treatment.