Expenses to ask about
Publication 527 (2025) lists common rental expenses, including advertising, cleaning and maintenance, insurance, mortgage interest paid to banks and repairs. Rental income and expenses are reported on Schedule E.
Rental Property Tax Documents Checklist (Schedule E) | HelloBooks Rental property tax documents for Schedule E: rent received, common expenses from Pub 527, repairs versus improvements, depreciation records and closing statements.
Document collection · rental property
Document checklist for rental property owners
Rental clients often keep good records of rent and poor records of spending. Publication 527 tells you which expenses to ask about, and the repairs-versus-improvements split decides how much of it is deductible this year.
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- Rent received by month
- Security deposits kept or applied
- Platform statements for short-term rentals
Expenses
- Advertising
- Cleaning and maintenance
- Insurance
- Mortgage interest statements
- Repairs, with invoices
Capital
- Improvements, separated from repairs
- Closing statement for property bought or sold
- Prior depreciation schedules
Repairs versus improvements
Publication 527 tells owners to separate the costs of repairs and improvements and keep accurate records. Depreciation, it says, is a capital expense taken over the expected life of the property. Ask for invoices that describe the work, not just the amount.
One set of books per property
Clients with several rentals can keep each property’s income and expenses in its own accounts in HelloBooks, with bank feeds and receipt capture doing the collecting during the year. Schedule E figures then come from the ledger rather than a shoebox.
FAQ
Frequently asked questions
- Does the client need closing statements every year?
- Only in the year a property is bought or sold. Keep them for as long as the property’s basis matters.
- What about vehicle costs for managing the rental?
- Publication 527 points to the recordkeeping rules in chapter 5 of Publication 463 for vehicle expenses, so ask for a mileage log.
Related
Keep exploring
Tax document checklist for individuals (Form 1040)
Document collection · individuals
Business tax document checklist
Document collection · businesses
Client document collection for accountants
For CPA and EA firms · documents
Tax return changes for CPA firms
Every federal change for the 2025 and 2026 seasons
Sources
- IRS Publication 527 (2025), Residential Rental Property — checked 2026-10-21
- IRS Publication 583, Starting a Business and Keeping Records (12/2024) — checked 2026-10-21
General information for tax and accounting professionals, not legal advice. Rules are summarised from the primary sources listed on the date shown; read the current text before relying on it.
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