Checklist
Year-One Landlord Tax Prep Checklist
Get your first rental's books ready for tax season — income records, expense categories, depreciation basis, 1099s, and mileage — so filing is tidy instead of a frantic shoebox hunt.
- Total every dollar of rent you collected Add up monthly rent plus any late fees or pet fees. This is your gross rental income for the year.
- Record security deposits separately from income A deposit you still hold is not income. Track it apart so you do not overstate what you earned.
- Gather your mortgage interest statement Your lender's year-end form shows the interest you paid, which is generally a deductible expense.
- Pull property tax and insurance records Both are routine operating expenses. Keep the statements that show what you actually paid.
- Sort repairs and maintenance receipts into one place Fixing a leak or repainting is usually an expense. Group these so nothing slips through the cracks.
- Separate improvements from repairs A new roof or remodel is typically capitalized and depreciated, not deducted all at once. Keep them apart.
- Establish your depreciation basis Generally your purchase price plus certain closing costs, minus the land value. Your tax pro confirms the split.
- Note your placed-in-service date Depreciation usually starts when the property was ready and available to rent, not when you bought it.
- Log management, leasing, and advertising fees Property manager cuts, listing fees, and tenant-screening costs are normal deductible expenses.
- Track utilities and HOA dues you paid Any utility bill or association fee you covered instead of the tenant belongs in your expense list.
- Issue 1099s to contractors you paid If you paid an unincorporated contractor above the IRS threshold for services, a 1099-NEC is generally required.
- Total your rental-related mileage Trips to the property for showings, repairs, or supplies may be deductible. Keep a dated log, not estimates.
- Estimate your year-one taxable result Run your numbers through the year-one tax estimator so April holds no surprises.
- Hand a clean, categorized file to a tax professional Organized records cut their time and your bill. This checklist is educational, not tax advice.
Your first tax season as a landlord is far easier when you start gathering records before you sit down to file. This checklist walks you through the income, expenses, depreciation, and paperwork a tax professional will ask for, so you hand over a tidy file instead of a shoebox of receipts. Keep in mind this is educational and not tax advice — a qualified preparer should confirm how each item applies to your situation. The earlier you organize, the smaller both the stress and the preparer’s bill tend to be.