Taxes

Landlord Tax Deductions Checklist: 25 Expenses Small Landlords Often Miss

A line-by-line checklist of commonly overlooked rental expenses, the records that back them up, and the questions to bring to your tax preparer.

Jon

— 4 min read
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Most small landlords don't overpay taxes because they claim too little on purpose. They overpay because small expenses never make it into the books. A $15 key copy here, a mileage trip there, a screening fee you paid but forgot.

Use this checklist once a quarter, or at least before you meet your tax preparer, to catch what's missing. It's organized roughly by the Schedule E (Form 1040) expense lines so you can drop totals straight into your categories.

Not tax advice. This is general education drawn from the IRS's Schedule E instructions and Publication 527, Residential Rental Property. Whether a specific expense is deductible, and when, depends on your facts. Confirm with a qualified tax professional and the current year's IRS guidance.

Before the checklist: three ground rules

  1. Ordinary and necessary. Rental expenses generally need to be ordinary and necessary for managing, conserving, or maintaining the rental property.
  2. Rental, not personal. Personal expenses aren't deductible. Mixed-use items need to be split.
  3. Repairs vs. improvements. Repairs are generally deducted in the year paid. Improvements are generally capitalized and depreciated. Track both. Let your preparer apply the rules and safe harbors.

The checklist

Advertising (line 5)

  • ☐ Online listing fees and paid ads
  • ☐ "For Rent" signs
  • ☐ Listing photography

Auto and travel (line 6)

  • ☐ Mileage to the property for repairs, showings, inspections, and supply runs, with a log of date, destination, purpose, and miles
  • ☐ Parking and tolls on rental trips
  • ☐ Overnight travel to a distant rental. Special rules apply, so ask your preparer.

Cleaning and maintenance (line 7)

  • ☐ Turnover cleaning
  • ☐ Lawn care, snow removal, gutter cleaning
  • ☐ Pest control
  • ☐ HVAC servicing

Commissions (line 8)

  • ☐ Leasing commissions or tenant-placement fees

Insurance (line 9)

  • ☐ Landlord/dwelling policy
  • ☐ Liability or umbrella coverage allocable to the rental
  • ☐ Flood insurance
  • ☐ Only the current-year portion of a prepaid multi-year policy
  • ☐ Tax preparation fees for the rental portion of your return
  • ☐ Attorney fees for lease drafting or evictions
  • ☐ Bookkeeping help
  • ☐ Note: legal fees tied to buying the property are usually added to basis instead.

Management fees (line 11)

  • ☐ Property management fees
  • ☐ Leasing or renewal fees paid to the manager

Mortgage and other interest (lines 12–13)

  • ☐ Interest only (not principal), per Form 1098
  • ☐ Interest on a HELOC or other loan used for the rental. Tracing rules apply, so ask your preparer.
  • ☐ Interest on a credit card used only for rental expenses

Repairs (line 14)

  • ☐ Plumbing and electrical fixes
  • ☐ Appliance repairs
  • ☐ Drywall patching, painting between tenants
  • ☐ Replacing broken components (a window pane, a faucet)

Supplies (line 15)

  • ☐ Light bulbs, filters, batteries, smoke/CO detectors
  • ☐ Cleaning supplies
  • ☐ Locks, keys, small hardware

Taxes (line 16)

  • ☐ Property taxes on the rental
  • ☐ Check with your preparer about other taxes or licenses specific to rental operations

Utilities (line 17)

  • ☐ Water, sewer, and trash you pay
  • ☐ Common-area electric or gas
  • ☐ Utilities during vacancy

Depreciation (line 18)

  • ☐ The building (generally 27.5 years for residential rental property; land isn't depreciable). See Publication 527 and Publication 946.
  • ☐ Capital improvements (new roof, HVAC, major remodels)
  • ☐ Appliances and furniture you provide (shorter recovery periods)
  • ☐ Make sure your preparer has your closing statement and a list of improvements with dates and costs

Other (line 19)

  • ☐ HOA dues
  • ☐ Tenant screening and background-check fees you pay
  • ☐ Bank fees on the rental account
  • ☐ Rental software, apps, and templates (yes, including spreadsheets you buy for the rental)
  • ☐ Postage and certified mail for notices
  • ☐ Rental-related education. Treatment varies, so ask your preparer.
  • ☐ Home office used for the rental business. Strict requirements apply, so ask your preparer.

Gray areas to bring to your preparer

These come up a lot with small landlords and are worth a specific question:

  • Repair vs. improvement, and whether the de minimis safe harbor, routine maintenance safe harbor, or safe harbor for small taxpayers applies to anything you spent this year
  • Passive activity loss limits. If your rental shows a loss, how much can you use this year? (See Publication 527 and Publication 925.)
  • Qualified business income (QBI) deduction. Whether your rental activity qualifies, including the IRS's rental real estate safe harbor
  • Personal use days if you or family stayed at the property
  • Security deposits you kept this year (generally income when kept, per Publication 527). See security deposit basics.
  • Start-up costs if the property was placed in service this year
  • Form 1099 filing obligations if you paid contractors

Records to keep

For every deduction, you want proof: receipts or invoices, bank or card statements, mileage logs, and a note on what the expense was for and which property it belongs to. The IRS's recordkeeping guidance (Publication 583) and the "How long should I keep records?" page on IRS.gov explain retention periods. Keep property purchase and improvement records until the limitation period expires for the year you sell.

Make next year easier

The fix for missed deductions is simple: categorize every expense when it happens, not at year-end. Our rental property expense tracking spreadsheet guide shows the setup, and Schedule E categories explained covers each line in detail.

If you'd like it pre-built, the Multi-Property Rental Bookkeeping Workbook in the Toolkit has Schedule E categories, a summary tab laid out like the form, and a mortgage tracker that splits interest from principal. Or start with the free single-property tracker when you subscribe. New here? Start Here.

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This article is for general educational purposes and is not tax advice. Deductibility depends on your circumstances and current law. Consult a qualified tax professional. — Jon, Everyone's Landlord

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