Owners of rental property are allowed to deduct depreciation from rental income.
Property owners who rent their dwellings must pay taxes on the income, but they are also allowed to deduct some amounts from their earnings. The primary means of deducting rental income is achieved through depreciating the property. Property is depreciated using the Modified Accelerated Cost Recovery System (MACRS). IRS rules allow depreciation only for the portion of a property used for rental purposes. To depreciate property, you must be the owner of the property. You cannot depreciate a property if you are renting it. Land does not qualify for depreciation; only structures qualify. Continue reading at the source link below…
Source: How to Calculate Depreciation for Rental Properties | Home Guides | SF Gate