Tax Return Changes for Rental Property Owners | HelloBooks Bonus depreciation on qualifying property, the SALT cap for property taxes, the $2,000 1099 threshold for repairs. What landlords need for 2026.
Small landlords see fewer headline changes than active investors, but several smaller ones affect their Schedule E and their vendor paperwork.
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Bonus depreciation
100% for qualifying property
Applies: Tax years 2025 and 2026From IRS.gov · checked October 10, 2026
Appliances, furniture and other short-life property placed in a rental and acquired after January 19, 2025 can qualify for 100% bonus depreciation. Property taxes on a personal residence count toward the higher SALT cap, while property taxes on a rental are a Schedule E expense.
Landlords who pay a repair contractor in the course of a rental business need a 1099-NEC only from $2,000 for 2026 payments.
Track each property separately with its own income and expense accounts, and capitalize improvements apart from repairs. Receipt capture keeps the supporting documents with each transaction, which helps when repairs and improvements are close calls.
The plain-English summary for business owners
By client type · real estate investors
Business returns · Form 4562
Information returns · payments from 2026
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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