Tax returns for landlords and real estate investors — one property or a portfolio, in one state or several. Rental income, expenses, depreciation, repairs versus improvements and the passive-loss rules handled on Schedule E, with the price confirmed per property before work begins. Personal returns from $300. Landlords nationwide, handled online from Los Angeles.
Rental income and expenses reported property by property on Schedule E of your Form 1040, with the totals flowing to the return and to your state.
Rent, late fees, tenant-paid expenses and security deposits that were kept are income; deposits you still hold are not. Rent collected through payment apps is reportable whether or not a 1099-K arrives.
Mortgage interest, property tax, insurance, management fees, repairs, utilities you pay, HOA dues, advertising, travel to the property, and the professional fees for keeping the books and preparing the return. Schedule E line by line →
Residential rental buildings are depreciated over 27.5 years, straight-line, from the date placed in service, with land excluded. We set the basis correctly at the start and carry the schedule forward every year — depreciation you were entitled to is treated as taken whether you claimed it or not.
Repairs are deducted in the year paid; improvements are capitalized and depreciated. We apply the IRS safe harbors where they fit: the $2,500 per-item de minimis rule, the routine maintenance safe harbor, and the small-taxpayer safe harbor of the lesser of 2% of the building’s basis or $10,000.
Rental losses are passive. Up to $25,000 can offset other income if you actively participate, phasing out between $100,000 and $150,000 of modified adjusted gross income; the rest carries forward. We track the carryforwards so nothing is lost when the property is sold.
Each property on its own Schedule E column with its own depreciation schedule and loss carryforward, and portfolio totals that reconcile.
Rental income is taxed by the state where the property sits. Out-of-state landlords file a nonresident return there and take a credit at home; we prepare both. California withholds 7% on rent paid to nonresident owners above $1,500 a year, so a California rental owned from another state comes with Form 592-B credits to claim.
Vacation rentals with personal use, rooms in your home, and short-term rentals with substantial services each follow different rules; we sort out which applies before preparing the schedule.
The gain is the sale price less your adjusted basis, and the portion attributable to depreciation is taxed at up to 25% as unrecaptured section 1250 gain; the home-sale exclusion does not cover a rental, and suspended passive losses are generally released in the year of sale. We prepare Form 4797 and Schedule D and, where a 1031 exchange was done, Form 8824.
A single-member LLC still reports on Schedule E; a multi-member LLC files Form 1065 and reports rentals on Form 8825 with a K-1 to each member. See partnership tax return preparation.
Unfiled years with rentals usually have depreciation and carryforwards to rebuild. Start with unfiled tax returns.
Rent ledger or property-manager statements for the year, security deposits received and returned, and any Forms 1099-MISC or 1099-K received.
Form 1098 mortgage interest, property tax bills, insurance, HOA statements, management fees, utilities, and receipts for repairs and maintenance.
Invoices for roofs, HVAC, appliances, remodels and other improvements with dates and amounts, so they can be capitalized and depreciated correctly.
Closing statement from when you bought the property, the land/building split, and prior depreciation schedules if the property has been rented before.
Last year’s return, including Schedule E, Form 8582 passive-loss carryforwards and the depreciation report.
Closing statement for any sale, and Form 8824 details for a 1031 exchange.
Rental schedules are quoted per property on top of the personal return base price published on the pricing page, and confirmed before work begins.
The number of properties, additional state returns, a sale or exchange during the year, short-term rental rules, and records that need reconstruction — for example a depreciation schedule that was never set up.
Investors with several properties often keep them on a monthly bookkeeping plan so the Schedule E numbers are ready in January rather than rebuilt in March.
Rentals are prepared alongside the rest of your personal return — wages, investments, a business — by the same team. Personal tax preparation →
Yes. The loss is reported on Schedule E; whether it can be deducted this year depends on the passive-loss rules, and any part that cannot carries forward.
Generally no. Rental income reported on Schedule E is not self-employment income, unless substantial services are provided to tenants, as with some short-term rentals.
The building, not the land, is depreciated over 27.5 years straight-line from the date it was placed in service. Improvements are depreciated separately from their own dates.
A repair keeps the property in its ordinary operating condition and is deducted now; an improvement betters, restores or adapts it and is depreciated. The IRS safe harbors let many smaller items be deducted immediately.
Usually. Gain above your adjusted basis is taxable, with the depreciation portion taxed at up to 25%, and the personal-residence exclusion does not apply to a rental. A 1031 exchange can defer it when the rules are followed.
A California nonresident return for the rental income, and your home-state return with a credit for the California tax. If your property manager withheld 7% under California’s nonresident rules, that withholding is claimed on the California return.
Tell us how many properties and where, and we’ll confirm the scope and price.