Yes, homeowners insurance can be deducted on a rental property under certain circumstances. However, it is important to note that homeowners insurance premiums are generally not directly deductible as a rental property expense. Instead, they are typically considered part of the property's operating expenses, which are deducted from the rental income to calculate the net rental income.
In general, you can deduct homeowners insurance premiums as a rental property expense if the insurance is directly related to the rental activity. This means that the insurance must be specifically for the rental property and not for your personal residence. For example, if you have a separate insurance policy for your rental property, you can deduct the premiums as an expense.
It's important to keep in mind that if you also use the rental property for personal purposes, such as renting it out for only part of the year and using it yourself for the rest of the year, you may need to allocate the insurance premiums between personal and rental use. In this case, you can only deduct the portion of the premiums that is allocated to the rental use of the property.
Additionally, if you have a mortgage on the rental property, the mortgage interest is generally deductible as a rental property expense. However, the portion of the mortgage payment that goes towards the escrow account for homeowners insurance is not deductible as a separate expense. Instead, it is considered part of the mortgage interest deduction.
As always, it's recommended to consult with a tax professional or accountant for personalized advice regarding your specific situation and to ensure compliance with tax laws and regulations.
I hope this helps! Let me know if you have any more questions.