Taxes & Accounting
Deductions, basis, Schedule E, and staying audit-ready.
Startup Costs for Your First Rental — IRS Rules Explained
The IRS treats startup costs before your first rental is placed in service differently than ongoing expenses — a specific deduction amount applies, then amortization.
Are Software Subscriptions Deductible for Landlords?
Software and subscription costs used to run your rentals are generally deductible as ordinary business expenses on Schedule E.
STR Material Participation — 7 Tests That Make Rentals Non-Passive
Short-term rentals with average stays of seven days or less can escape passive-activity treatment if you meet one of seven IRS material-participation tests.
How to Turn a Shoebox of Receipts Into a Filed Schedule E
A four-step process — sort, enter, reconcile, export — turns a year of scattered receipts into clean Schedule E totals ready for your tax preparer or software.
Should I Open a Separate Bank Account for My Rental Property?
A dedicated rental checking account cuts Schedule E prep time in half and creates a clean audit trail for every dollar in and out of the property.
Schedule E vs Schedule C for Rentals — Which Form Do You File?
Most rentals report on Schedule E, but short-term rentals with substantial services belong on Schedule C — and the self-employment tax bill changes with the form.
Safe Harbor for Small Taxpayers — The $10K/$2% Election
The safe harbor for small taxpayers lets qualifying landlords expense certain repair and improvement costs up to $10,000 or 2% of basis — whichever is less.
Routine Maintenance Safe Harbor — How Landlords Expense Repairs
The routine maintenance safe harbor lets landlords expense recurring work instead of capitalizing it if the activity is expected to recur within a defined timeframe.
How the 27.5-Year Residential Rental Depreciation Schedule Works
Residential rental buildings depreciate over 27.5 years under MACRS — only the structure, not the land, using straight-line calculations that start when the property is rentable.
Rental Days vs Personal Use — IRS Rules for Mixed-Use Property
The IRS distinguishes rental properties from personal residences based on how many days you rent vs use — cross the wrong threshold and your deductions get capped.
How to Reconstruct Lost Tax Records the IRS Will Accept
The IRS accepts reconstructed records if originals are lost to fire, flood, or data failure — here's the documented process to rebuild your file.
How Long to Keep Tax Receipts — Landlord Record Retention
Most returns and supporting receipts stay for three years, but property basis records must be kept as long as you own the asset plus three years after you sell.
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