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A landlord tax deductions checklist for small US rental owners

By Spruce Sheets · Updated November 14, 2026 · 5 min read

Tax time is much easier when the records are already in the right piles. This checklist is a practical list of deductions small US landlords commonly review, the documents that support them, and the items that are easy to misclassify. It complements the line-by-line Schedule E category guide rather than replacing it.

This is general information to help you organize records, not tax advice. What you can deduct, in which year, and on which form depends on your facts and on current law. Confirm everything with a qualified tax professional. The IRS references behind this list are mainly Publication 527, Publication 946 and the Schedule E instructions.

Before you add up expenses

• Keep the rental activity separate. A dedicated bank account and a simple bookkeeping log make this list a review, not a reconstruction.
• Work property by property. Schedule E has a column for each property.
• Use the cash method consistently if that is how you report (most small landlords do): you generally deduct expenses in the year you pay them, and you report rent in the year you receive it.
• Do not deduct personal costs, or the value of your own labor.

Income to have complete first

Your expense list is only useful if income is complete:

• Rent actually received, including prorated first or last months.
• Late fees and other amounts you kept.
• Security deposits you kept for unpaid rent or damage (a deposit you still plan to return is not income).
• Advance rent, including last month's rent paid up front, which is generally income when received.

Have the lease, the rent ledger and the bank deposits ready so these figures can be reconciled.

Ordinary expense checklist

Use this as a review against your logs and your file of receipts, not as a promise that every item is deductible in every case. The Schedule E line is for orientation and can change.

To review	Typical supporting records	Usually on Schedule E
Advertising and listing fees	Invoices, card statements	Line 5
Mileage or actual car expenses for rental trips	A contemporaneous mileage log; see how to track rental mileage	Line 6
Cleaning, lawn, snow, pest control	Invoices	Line 7
Leasing commissions, some platform fees	Closing or agent statements	Line 8
Landlord insurance (not your own homeowners' policy on a different house)	Policy and premium notices	Line 9
Legal, accounting and tax-prep fees for the rental	Invoices	Line 10
Property management fees	Monthly manager statements	Line 11
Mortgage interest (not principal)	Form 1098	Line 12
Other interest on rental debts	Statements	Line 13
Repairs (not improvements)	Invoices, photos, a note on what was fixed	Line 14
Supplies	Receipts	Line 15
Property taxes and rental-related taxes	Tax bills, escrow statements	Line 16
Owner-paid utilities	Utility bills	Line 17
HOA dues, bank fees, software, screening fees you did not pass on	Statements	Line 19, Other

If an amount was escrowed (taxes or insurance paid through the lender), use the year it was paid on your behalf, and do not also deduct it from a separate bill for the same period.

Depreciation and improvements (do not bury these in repairs)

• Building depreciation. Residential rental real property is generally recovered over 27.5 years. Land is not depreciable. See rental property depreciation and Form 4562.
• Improvements such as a new roof, an addition or a major remodel: generally capitalized and depreciated, not deducted in full on line 14. Keep a running list with dates and costs. The repairs vs improvements guide walks through a worked year.
• Personal property used in the rental (some appliances, for example) may have a shorter recovery period. That is a classification question for your preparer.

Items that often do not belong on this year's expense total

• Mortgage principal.
• The full cost of an improvement in the year you pay it.
• Security deposits still held for tenants.
• The value of your own labor.
• Costs of a property you used personally for part of the year, beyond the rental share (vacation-rental rules can be strict).
• Federal income tax itself.

A short January routine

Once the calendar year ends, a quiet hour with this list usually beats a panicked week in March:

1. Export or print the year's income and expense totals by property, and tick each category against the bank and against this checklist.
2. Pull the Forms 1098, tax bills and insurance statements, and compare them with what you logged. Escrowed amounts are a frequent mismatch.
3. Walk the improvement list: anything large that landed in repairs should be moved before you send the file to a preparer.
4. Finish the mileage log and the depreciation schedule while the year is still familiar.
5. Store a copy of the year's file (and the receipts) where you can find it again, including when you sell.

You are not filing the return in that hour. You are handing your preparer a complete, consistent set of records. That is the job this checklist is for.

Records to gather for your preparer

1. Income and expense totals by property, with the year's bank statements.
2. Forms 1098 (mortgage interest) and property tax bills.
3. Insurance premium records.
4. Repair invoices, and a separate list of improvements with dates.
5. Closing statements for any purchase, sale or refinance this year.
6. Depreciation schedule from last year (or the placed-in-service dates and basis if this is year one).
7. Mileage log, if you deduct car expenses.
8. Lease files and a note of deposits kept or returned.

Your preparer may ask for more. A complete file is more useful than a single grand-total spreadsheet with no source documents.

The Rental Property Bookkeeping Spreadsheet keeps income and expenses by property and by Schedule E category, so this checklist is a review of columns you already have.

Line numbers refer to Schedule E (Form 1040) Part I as used in recent IRS instructions and can change. This checklist is not tax advice.

Frequently asked questions

What can a landlord deduct on a rental property?

Ordinary and necessary expenses of the rental activity are generally deductible in the year you pay them if you use the cash method. Common items include advertising, insurance, management fees, mortgage interest, repairs, supplies, property taxes and utilities you pay. The building is recovered through depreciation, not as a one-year expense. Confirm your situation with a qualified tax professional.

Is the full mortgage payment deductible?

No. Only the interest portion is generally a rental expense. Principal reduces the loan and is not deducted. Your Form 1098 from the lender shows the interest.

Can I deduct a new roof in the year I pay for it?

Usually not in full. Replacing an entire roof is generally a capital improvement, recovered through depreciation, while fixing a leak may be a repair. See the IRS distinction in Publication 527, and ask your preparer about any safe harbors that might apply.

Keep reading

• Schedule E expense categories for landlords: a plain-English guide
• Repairs vs capital improvements on a rental property, explained
• How to track mileage for a rental property, with a 2026 worked example