Landlord year-end tax checklist for 2026

Updated 2026-11-09 · Lintel

Most landlord tax pain happens in March, but it is caused in December. An hour spent on these ten items before December 31 makes your Schedule E a copy-and-paste job instead of a shoebox hunt.

The checklist

#	Task	Why it matters
1	Reconcile every rent payment and expense for 2026, per property	Each property gets its own Schedule E column
2	Get a W-9 from every contractor you paid	You need their name and TIN to file a 1099-NEC
3	Total contractor payments: anyone at $2,000 or more?	The 2026 1099-NEC threshold rose from $600 to $2,000
4	Total your mileage in two parts: before and after July 1	The IRS rate was 72.5¢, then 76¢
5	List every capital improvement with date and cost	Improvements are depreciated, not expensed
6	Check repairs over $2,500 per invoice	Above the de minimis safe harbor, look closer
7	Record deposits held, returned and kept	Only the part you keep is income
8	Gather Forms 1098, property tax bills and insurance declarations	Lines 12, 16 and 9 of Schedule E
9	Write off nothing for unpaid rent	Cash-basis landlords never reported it as income
10	Prepare a one-page summary for your preparer	Per-property totals, depreciation, 1099s, mileage

1. Reconcile, per property

Go through your bank and card statements month by month and make sure every rental transaction is recorded against the right property and category. Pull out anything personal. A shared expense, such as one insurance policy covering two rentals, should be split by a reasonable method and the method written down. See which Schedule E line each expense belongs on.

2–3. W-9s and the new $2,000 1099-NEC threshold

If your rental activity is a trade or business and you paid an unincorporated contractor (a handyman, a cleaner, a plumber operating as a sole proprietor) $2,000 or more during 2026, you generally need to send them a Form 1099-NEC and file it with the IRS by January 31, 2027. For payments made in 2025 and earlier the threshold was $600. The One Big Beautiful Bill Act raised it for payments made after December 31, 2025.

It is much easier to get a W-9 while the contractor is still answering your texts. Ask now, not in late January. Whether your rental counts as a trade or business depends on your facts, so ask your preparer if you are unsure.

You may also receive forms: a 1099-MISC from a property manager for rents collected, or a 1099-K from a payment platform. Payment platforms report only above $20,000 and 200 transactions. Rent you receive is taxable either way, form or no form.

4. Mileage at two rates

2026 is unusual: the standard mileage rate was 72.5 cents per mile from January 1 to June 30 and 76 cents from July 1. Add up your logged rental miles separately for each half. Details in our landlord mileage guide, or total your trips with the free mileage calculator.

5–6. Improvements vs. repairs

Anything that bettered, restored or adapted the property (a new roof, a new HVAC system, a kitchen remodel) is an improvement. It is depreciated, usually over 27.5 years for residential rental property, starting the month it was placed in service. Write down the date, the cost and what it was.

Some items in a rental, such as appliances or carpet, have shorter lives and may qualify for bonus depreciation. For property acquired after January 19, 2025, the bonus rate is 100%. The building itself does not qualify. This is worth a question to your preparer if you bought appliances this year.

Repairs are deducted this year. Invoices of $2,500 or less can usually be expensed under the de minimis safe harbor, but you have to make that election on your return each year. See repairs vs. improvements.

7. Security deposits

A refundable deposit isn't income while you hold it. The part you keep for damage or unpaid rent is income in the year you keep it. A “last month's rent” deposit is advance rent and taxable when received. More in are security deposits taxable?

8. The documents your preparer will ask for

Form 1098 from each lender (mortgage interest, Schedule E line 12). Principal is not deductible.
Property tax bills for each rental (line 16). Property taxes on a rental are deducted on Schedule E in full. The SALT cap applies to itemized deductions on Schedule A, not to rental expenses.
Insurance declarations (line 9). Prepaid policies covering future years may need to be spread.
The closing statement if you bought or sold a rental this year.

9. Unpaid rent is not a deduction

If a tenant still owes you December rent, there is nothing to deduct. Most individual landlords use the cash method, so rent that was never received was never counted as income. Track it on your rent roll for collection, but keep it out of your tax numbers.

10. The one-page hand-off

Give your preparer one summary instead of a folder of receipts:

rents received and each expense category, per property, as Schedule E lines 3–19
depreciation for the year, with a list of new improvements
contractors paid $2,000+ and whether 1099s were sent
total business miles at each 2026 rate
deposits held at year end

Preparers often charge by the hour. Clean totals cost less to process than raw receipts.

Landlord Ledger produces that hand-off. Log transactions as they happen. The Schedule E sheet totals lines 3–21 for each property, and the depreciation and mileage tabs (with both 2026 rates) feed straight into it.

Get Landlord Ledger — $12 Free Lite version

Sources: IRS Publication 527 (Residential Rental Property); IRS Instructions for Forms 1099-MISC and 1099-NEC; One Big Beautiful Bill Act §70433 (1099 threshold) and the 100% bonus depreciation restoration; IRS 2026 standard mileage rate announcements. General information, not tax advice. Confirm details with a tax professional.