Year-End Tax Checklist for Landlords: What to Gather
Tax season goes much more smoothly when your paperwork is ready before your tax preparer asks for it. Most landlords report rental income and expenses on Schedule E (Form 1040), according to the IRS. That form asks for income, expenses and depreciation for each rental property, so the goal is simple: have those numbers and the records behind them ready for every property.
Free printable for this guide: Year-End Tax Prep Checklist
Here's what to gather.
1. Rental income records
The IRS says that in most cases you must include in your gross income all amounts you receive as rent. Gather:
- Your rent ledger for each unit, with yearly totals.
- Advance rent. The IRS says advance rent is income in the year you receive it, whatever period it covers.
- Security deposits you kept. Deposits you plan to return aren't income when received, but amounts you keep because a tenant didn't meet the lease terms are income in the year you keep them, per the IRS.
- Lease cancellation payments, which the IRS treats as rent.
- Expenses tenants paid on your behalf, which the IRS counts as rental income (and which may also be deductible expenses).
- Services or property received instead of rent, at fair market value.
2. Expense records
The IRS lists common rental expenses including advertising, cleaning and maintenance, insurance, legal and professional fees, management fees, mortgage interest, repairs, taxes and utilities. For each property, gather your yearly totals and receipts for:
- Repairs and maintenance
- Insurance premiums
- Property taxes
- Utilities you pay
- Advertising and listing fees
- Professional fees, such as tax preparation for the rental part of your return
- HOA or condo dues for maintenance of common areas
- Supplies and small tools
3. Mortgage and loan documents
- Form 1098. The IRS says that if you paid $600 or more of mortgage interest on your rental to one lender, you should receive a Form 1098 or similar statement.
- Records of any refinancing and points paid. The IRS generally treats points as prepaid interest deducted over the life of the loan, not all at once.
4. Improvements and big purchases
The IRS requires you to capitalize improvements, such as a new roof, furnace, water heater or flooring, and generally recover the cost through depreciation. Gather invoices for anything big you bought or installed this year, with the date it was placed in service. Appliances, carpets and furniture used in a rental are generally 5-year property, and residential rental buildings are generally depreciated over 27.5 years, according to IRS Publication 527.
If this is your first year renting a property, also gather your purchase closing statement. Your tax preparer will need it to figure your basis.
5. Mileage and travel
If you drove for rental business, gather your mileage log. The IRS says you must keep records to deduct car expenses, and that trips between your home and the rental are generally commuting unless your home is your principal place of business.
6. Contractor payments
List what you paid each contractor and gather their Forms W-9 if you have them. Depending on amounts paid, you may need to file information returns such as Form 1099-NEC. Thresholds were recently changed, so check current IRS guidance or ask your tax preparer.
7. Last year's return
Your prior-year return shows past depreciation and any carried-over losses. The IRS notes that rental losses may be limited by passive activity rules, and unused losses carry forward.
Keep it for later
The IRS says to keep records supporting your return until the period of limitations runs out, generally 3 years after filing, with longer periods in some situations. Keep improvement and purchase records for as long as you own the property and beyond, since you'll need them when you sell.
Get the free checklist: Our Year-End Tax Prep Checklist lists the income, expense and property records your tax preparer is likely to ask for, so you can check them off as you go. Download it free here.
Next year, make it even easier by logging as you go with the Rental Expense Tracker and Rent Payment Ledger.
FAQ
Where do landlords report rental income?
Most landlords who provide basic services report rental income and expenses on Schedule E (Form 1040), according to the IRS. Your tax preparer will confirm what applies to you.
Is a security deposit taxable income?
Not when you receive it, if you plan to return it, per the IRS. Amounts you keep become income in the year you keep them.
Can I deduct my mortgage payment?
Generally you can deduct mortgage interest on a rental, but not the principal. The IRS says you can't simply deduct mortgage principal payments; you recover the property's cost through depreciation.
The LandlordPrintables team
This article is general information, not tax advice. Tax rules change, so confirm details with the IRS or your tax preparer.
Sources: IRS, Publication 527, Residential Rental Property (2025); IRS, How long should I keep records?