Tax Accountant For Landlords

When you rent out a residential or commercial property, the IRS expects clear records of the income you received throughout the year. This includes monthly rent, late fees, pet fees, and any payment a tenant makes on your behalf, such as utilities or maintenance charges. Each amount is entered in the correct line of Schedule E, so your return shows exactly what you earned during the year.

You also track the costs tied to your rental activity, but it can be tricky: for example, repair costs for patching drywall are treated differently from improvements such as replacing a roof. The way you record these costs affects your taxable income, so the details you keep during the year directly influence the accuracy of your filing. When records are incomplete or estimates are used, the IRS may question the return.

At USA Tax Gurus, our team includes experienced tax accountants for landlords. We can help you prepare your financials and complete your tax filings so that they both meet IRS standards, starting at $499 per month.

Benefits of Choosing USA Tax Gurus for Your Tax Needs

When you work with USA Tax Gurus, we review your rent activity, expense documentation, and property details so each figure on your return comes from a verifiable source. This way, your records are always ready to be included on a tax return or presented during an audit instead of hunting for documentation at the last minute. Below are some of the many advantages of working with a tax accountant for landlords.

Benefit	What It Means for Your Business
Professional Document Review	We review your rent records, expense receipts, mortgage statements, and insurance documents so every figure on your return has a clear source that can be retrieved when necessary.
Compliant Federal and State Tax Filings	We prepare your federal return and any state filings tied to your rental property, including nonresident returns and city filings when required.
Clear Direction	You receive a structured checklist that lists the exact items to upload, such as Form 1098, property tax bills, repair invoices, and utility statements.
Year-Round Availability	If you plan upgrades such as a roof replacement or new HVAC system, we will explain how the cost will appear on your next return.
Repair vs. Improvement Review	We check whether each item should be recorded as a repair or improvement so your depreciation remains accurate.

How a Tax Accountant Supports Landlords

As a landlord, you deal with income, expenses, and property-related financial activity that must be entered correctly on your return. We work through each category so the information you provide fits the IRS rules that apply to rental property. This gives you a return that accurately reflects the activity you carried out during the year.

Here’s what our experienced team can do for you.

Service	What It Means for Your Rental Business
Schedule E Preparation	We enter each income and expense item into Schedule E based on the records you provide. This includes rent collected, fees charged to tenants, repairs, improvements, utilities, and insurance. By placing each amount in the correct line, we make sure the form reflects your yearly activity without missing categories.
Expense Classification	We review your receipts and invoices to see whether each cost qualifies as a repair or an improvement. A repair, such as a faucet replacement, is entered in the year you paid for it, while an improvement, such as new flooring, requires a longer write-off period. This classification affects your taxable income, so we confirm the correct treatment before preparing your return.
Depreciation Setup	We review your property records to identify the correct starting point for depreciation. Residential property follows a fixed schedule, and improvements follow separate timelines based on the item. We calculate each schedule so your return reflects the correct remaining value each year.
Rental Activity Review	We look at how you handled the rental during the year, including vacancies, short-term stays, and long-term leases. Each activity has reporting rules that affect how income and expenses appear on your return. We review these details so the reporting matches the way you used the property.
Mortgage and Loan Tracking	We check your mortgage Form 1098 and loan statements to capture interest paid during the year. This amount must match the documents issued by your lender. We enter it in the correct section of Schedule E, so your filing matches IRS expectations.
Record Standards	We confirm that your receipts, statements, and rent logs meet the documentation level the IRS expects. This includes verifying payment dates, payees, and amounts. With clear records in place, the information entered on your return can be traced directly to a document you can produce if requested.
State Filing Review	We check whether your rental activity triggers state filings in more than one location. Some states require a filing even if you live elsewhere. We prepare these filings when needed, so your return covers all jurisdictions tied to your property.
Income Verification	We compare your rent log with bank records or payment summaries to make sure every amount appears on your return. This prevents gaps that could raise questions during a review. When the amounts match your records, your return reflects the full activity for the year.

Depreciation Rules That Apply to Rental Property

Depreciation determines how much of your rental property cost you can deduct each year. The IRS assigns fixed timelines for residential buildings and separate timelines for improvements and equipment. We apply these rules to your records so each deduction matches the schedule required for your property.

Here’s how depreciation works for your rental:

• Residential Rental Period: The IRS assigns a 27.5-year recovery period to residential rental buildings. This means the building portion of your property’s basis is written off in equal amounts over that time. We confirm your building basis and apply the correct yearly figure.
• Land Exclusion: The IRS doesn’t allow depreciation on land. When we review your closing documents, we separate the land value from the building value so only the structure is depreciated. This ensures your yearly deduction follows IRS rules.
• Improvement Timelines: Improvements such as roofing, flooring, HVAC systems, and windows must be depreciated over long periods that match IRS class lives. These timelines differ from the 27.5-year building schedule. We assign each improvement to its required period, so your return reflects accurate write-offs.
• Short-Life Property: Items like appliances, carpeting, and certain equipment follow shorter class lives that range from five to fifteen years. These timelines are set by the IRS based on the item’s category. When you purchase these items, we place each one into the correct class so the yearly deduction is accurate.
• Placed-in-Service Rule: Depreciation begins when the property or item is placed in service, not on the purchase date. The IRS requires that the deduction align with the month the rental or improvement became available for use. We enter this date so the first-year amount matches the IRS table.
• Mid-Month Convention: Residential rentals follow a mid-month convention, which means the IRS treats all placed-in-service dates as if the activity began in the middle of the month. This affects the first and last year of depreciation. We apply this rule when calculating your yearly figure.
• Adjustment for Prior Years: If you’ve owned the property for several years, your current depreciation must account for the amount already claimed. The IRS requires that you continue the schedule without skipping years. We review your past filings to confirm the remaining value.

When we apply these rules to your property, each figure on your depreciation schedule matches the IRS timeline for that item. Your building, improvements, and equipment follow separate schedules, and every deduction comes from documents you’ve already provided. This gives you a return with depreciation that stays accurate from year to year.

Expense Categories Landlords Can Claim

Your rental expenses reduce your taxable income when they’re recorded and documented correctly. The IRS allows deductions for costs tied to the operation, maintenance, and management of the property, but each category must match the rules set for rental activity. We review your receipts and statements, so every expense appears in the correct place on your return.

Common deductible expenses include:

• Repairs: Repairs such as fixing leaks, patching drywall, replacing broken locks, or repairing appliances can be deducted in the year you pay them. These costs restore the property to its previous condition without adding long-term value. We review each repair to confirm it fits IRS requirements for same-year treatment.
• Mortgage Interest: Mortgage interest appears on Form 1098 and is deducted based on the amount you paid during the year. The IRS reviews this figure closely because it must match the form issued by your lender. We enter the exact amount so your return matches your supporting documents.
• Property Taxes: Property taxes billed by your county or city are deductible for the year they apply. These amounts appear on your tax statements or mortgage escrow records. We match these figures with your statements so the deduction aligns with the taxes assessed.
• Insurance Premiums: Premiums for landlord insurance, liability coverage, and flood insurance qualify as rental expenses. These charges appear on your policy statements or mortgage escrow. We confirm the dates and amounts so the deduction reflects the period covered by the policy.
• Utility Costs: If you pay for electricity, water, gas, trash service, or internet tied to the rental, those costs are deductible. These charges must match your monthly bills or payment records. We review each bill to make sure the expenses entered relate directly to the rental.
• HOA and Condo Fees: Fees charged by homeowners’ associations or condo boards qualify when they relate to property upkeep or shared services. These amounts show up on monthly or quarterly statements. We enter these fees as operating expenses when they apply to the rental.
• Property Management Fees: Fees paid to management companies for rent collection, repair coordination, or tenant communication are deductible. These charges appear on monthly management summaries. We check each statement so the amounts entered match the services provided.
• Maintenance Supplies: Items such as paint, cleaning materials, light bulbs, air filters, and lawn supplies qualify when purchased for the rental. These items must be supported by receipts that show what was bought and when. We verify each purchase so the deduction aligns with property upkeep.
• Travel and Mileage: When you visit the property for repairs, inspections, or rent collection, you may deduct mileage or actual travel costs. The IRS expects a log that lists dates, destinations, and purposes for each trip. We check this log so the mileage figure entered is supported by records.
• Advertising Costs: Costs for listing the rental on websites, posting ads, or creating marketing materials can be deducted. These charges appear on invoices or platform receipts. We enter these amounts when they relate directly to attracting tenants.
• Legal and Professional Fees: Fees paid for lease drafting, legal matters tied to the rental, or tax preparation qualify as rental expenses. These charges must relate directly to the property. We review each invoice to place the amount in the correct category.
• Supplies for Tenant Turnover: Costs for cleaning, minor fixes, and basic preparation between tenants qualify when supported with receipts. These purchases keep the property ready for incoming tenants. We enter these amounts in the year they were paid.

When you provide receipts, statements, and logs for your rental expenses, we match each item with the IRS category it belongs to. Your Schedule E reflects the full range of deductible costs tied to the property, and each entry comes from a document you can produce if needed. This gives you a return built on clear records and accurate expense reporting.

Reporting Rental Income Correctly

Your rental income must match the amounts you received throughout the year. This includes rent, fees, and payments tenants make on your behalf. We review your logs and statements so the income reported on your return reflects what actually entered your accounts. Examples include:

• Monthly Rent: The amount your tenant pays each month is recorded as rental income for the year in which you received it. Bank statements, payment apps, and receipts provide the support needed for this figure. We match these records with your rent log, so the amount reported is accurate.
• Late Fees and Penalties: Amounts charged for late payments, returned checks, or lease violations count as income. These fees must appear in the year your tenant paid them. We review your records to confirm each fee collected is included on your Schedule E.
• Pet Fees: Fees for pets, including monthly pet rent or one-time charges, qualify as rental income. These amounts may appear on your lease or payment summaries. We enter them based on the dates and amounts shown in your records.
• Payments Made on Your Behalf: When a tenant pays a bill that belongs to you, such as utilities or minor repairs, the IRS treats that amount as income. Even if the tenant pays the vendor directly, you must record it. We include these amounts once you provide receipts or statements that show the payment.
• Advance Rent: Any rent you receive before the period it covers must be reported in the year you received it. This includes amounts given to secure the property before move-in. We record these payments based on your bank and payment records.
• Lease Termination Payments: If a tenant pays to end a lease early, the entire amount counts as rental income. This payment appears in your bank records or termination agreement. We include it in the year it was received.
• Security Deposits Applied to Rent: A refundable deposit isn’t income unless you keep some or all of it for unpaid rent or damage beyond normal wear. When a deposit is applied to unpaid rent, that portion becomes income. We record this amount when your records show the adjustment.
• Short-Term Rental Payments: If you use booking platforms, the gross amounts paid by guests count as rental income. These platforms issue year-end statements that show totals received. We enter these amounts so your filing includes all payments tied to short stays.

When you send us your rent logs, payment summaries, and bank statements, we match each entry with the IRS definition of rental income. Your Schedule E reflects the full range of payments you received, including fees and adjustments made during the year. This gives you a return that matches your records.

Get Expert Help Filing Your Taxes

Filing a return on your rental income calls for clear records, correct expense treatment, accurate depreciation, and income entries that match your statements. When you work with us, we apply all applicable rules to your records so your return reflects the full activity from your rental property. We review your records, organize your information, and complete the forms required for your rental. If you have questions or would like to get started, please fill out a contact form or call 213-212-8737 today.

Rental Property Tax FAQS

Do Short-Term Rentals Have Any Tax Differences?

Yes. Short-term rentals operate under rules that differ from long-term leases, and the IRS reviews these activities through separate categories. The number of days rented, the services you provide, and the way you use the property during the year all affect how your income is reported. We review your records to determine which rules apply and how each amount should appear on your return.

Here’s how short-term rental rules work:

• Rental Duration: The IRS treats rentals used for stays of seven days or fewer as short-term activity. If guests stay for longer periods but still fewer than thirty days, the length of stay combined with the services you provide may place the rental in a separate category. 
• Services Provided: If you provide services such as regular cleaning during guest stays, meal preparation, or guest support that resembles hotel activity, the IRS may treat the rental as a service-based business. This changes where the income appears on your return.
• Personal Use Days: If you use the property yourself for more than a minimal number of days, the IRS reduces the deductions you can claim for expenses tied to the rental. Personal use days appear on your booking or occupancy calendar.
• Platform Statements: Booking platforms typically issue reports that show gross income received during the year. These reports must match what you enter on your return, even if guests paid cleaning fees, service charges, or platform fees. We match platform totals with your bank records so your filing includes every relevant amount.
• Occupancy Taxes: Some cities or counties charge occupancy taxes for short-term rentals. These taxes apply in addition to federal and state filings. 
• Cleaning and Turnover Costs: Short-term rentals often involve frequent cleaning, linen replacement, and turnover supplies. These costs are deductible when tied to guest stays.
• Damage Charges: When guests pay for damage or lost items, these payments count as income. These amounts appear on platform reports or direct invoices. 

When you send us your booking history, platform reports, and expense records, we determine which set of rules applies to your short-term rental. Your return reflects the correct income category, the proper treatment of personal use days, and the full range of deductible expenses. This gives you reporting that fits the way you used the property during the year.

What if I Rent Out Properties in Other States?

When you own rental property outside your home state, you may need to file returns in more than one location. Each state has its own rules for reporting rental income, and some require a filing even when the activity is small. Here’s what you need to know:

• Nonresident State Filings: If your rental sits in a state where you don’t live, that state may require a nonresident return. These filings report only the income tied to the property in that location. 
• State Income Thresholds: Some states require a filing only when your rental income exceeds a set threshold. These thresholds vary and may apply even when the rental shows a loss. 
• Local Filings: Certain cities and counties require their own rental filings. These forms may include rental registration forms, local income reports, or occupancy taxes. 
• Apportioned Expenses: When you claim expenses for a property located in another state, the IRS allows the full deduction, but the state return may apportion some expenses based on state rules. These rules decide how much of your expense deduction can appear on that state’s form.
• Withholding Requirements: Some states require withholding on rental income paid to nonresident owners. This withholding may appear on statements issued by your property manager. 
• Depreciation Differences: States may have depreciation rules that differ from the federal schedule. These differences affect your state taxable income..
• Short-Term Rental Rules: Certain states impose separate filings for short-term rentals, including state-level occupancy taxes. These obligations aren’t always included in standard income tax forms. 
• State Residency Review: When you move during the year or maintain homes in multiple states, your residency status affects your filing obligations. A change in residency can shift which state claims your income. 

When you provide the addresses of your rental properties and the income tied to each one, we confirm every state that requires a filing. Your return reflects the rules for each jurisdiction, including nonresident filings, local forms, and withholding requirements. This gives you coverage for all states where your rental activity took place.