Landlord Recordkeeping and Tax Checklist
Good records turn tax season from a weekend of digging through emails into an hour of filling in totals. Here's what to track each month and what to pull together at year-end.
Monthly: keep it current
- Record every rent payment in your rent ledger, with date and method
- Save receipts for every expense (repairs, supplies, services) with a note of which property it was for
- Log mileage for trips to your rentals (date, purpose, miles)
- Keep rental money in a separate bank account from personal funds
- File notices, communications and lease changes in each tenant's folder
Year-end: gather these
| Item | Why you need it |
|---|---|
| Total rent received per property | Rental income on Schedule E |
| Other income (late fees, pet fees, kept deposits) | Also taxable rental income |
| Mortgage interest statements (Form 1098) | Deductible interest |
| Property tax bills | Deductible |
| Insurance premiums | Deductible |
| Repair and maintenance receipts | Deductible expenses |
| Improvement costs and dates | Depreciated rather than deducted all at once |
| Utilities you pay | Deductible |
| Payments to contractors | You may need to issue Forms 1099-NEC |
| Mileage log | Deductible travel |
| Professional fees (legal, accounting, software) | Deductible |
Common deductions small landlords miss
Depreciation
Residential rental buildings (not land) are generally depreciated over 27.5 years. It's a deduction even though no cash leaves your account, and you'll want to account for it whether or not you claim it.
Software and services
Reminder tools, accounting software, screening fees you pay and listing costs.
Travel
Mileage to show units, meet contractors or handle repairs.
Small items
Appliances and other items below the IRS de minimis threshold may be deductible immediately rather than depreciated, if you make the election.
Home office
If you manage your rentals from a dedicated space, you may qualify, depending on your situation.
Things that trip landlords up
- Security deposits: a refundable deposit isn't income when you receive it. It becomes income only if you keep some or all of it.
- Advance rent: rent paid in advance is income in the year you receive it, even if it covers next year.
- Repairs vs improvements: fixing a leak is a repair (deductible). A new roof is an improvement (depreciated).
- Mixing accounts: paying rental expenses from a personal card makes everything harder to prove.
How long to keep records
Keep tax records at least three years from when you file, longer in some situations (six years if income is substantially under-reported). Keep records of property purchases and improvements until at least three years after you sell the property, since they affect your gain.
Frequently asked questions
Are late fees taxable income?+
Yes. Late fees, pet fees, and any part of a security deposit you keep are generally rental income in the year you receive or keep them.
Do I need special software for landlord bookkeeping?+
Not for a handful of units. A separate bank account, a ledger per tenant and a folder of receipts are enough. Software helps as you grow, mostly by saving time.
Related resources
Let Ping send the reminders for you
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