Rental Tax Insights
The RentalDeductions Blog
In-depth guides on depreciation, cost segregation, and tax strategies for rental property owners. Written by tax professionals, backed by the IRS code.
FeaturedShort-Term Rentals11 min read
Short-Term Rental Lodging Tax Guide 2026: Occupancy Tax, Platform Collection & Host Obligations
How lodging, occupancy, and transient tax works for Airbnb and VRBO hosts in 2026 — the multi-layer tax stack, which platforms collect for you, what you still owe, and how to avoid the most common compliance mistakes.
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Topics:Short-Term RentalsTax StrategyDepreciationAudit DefenseTax BasicsTax ComplianceTax DeductionsTax FilingDeductionsCost Segregation
Tax Strategy8 min
Depreciation Recapture on Rental Property 2026: The 25% Tax Most Sellers Forget About
Complete 2026 guide to rental property depreciation recapture — how Section 1250 works, the 25% cap, the NIIT interaction, state tax stacking, and the four legitimate ways to defer or avoid it when selling.
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depreciation recaptureSection 1250unrecaptured 1250 gain
Tax Strategy13 min
Inherited Rental Property 2026: Step-Up in Basis, Depreciation Reset, and What to Do First
Complete 2026 guide to inheriting rental property — how the step-up in basis works, why depreciation restarts over 27.5 or 39 years, how to handle mid-year inheritance, selling vs holding, and the tax moves to make in the first 90 days.
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inherited rental propertystep-up in basisdepreciation reset
Depreciation9 min
IRS Notice 2026-11: What the New 100% Bonus Depreciation Guidance Means for Rental Property Owners
Plain-English walkthrough of IRS Notice 2026-11, which clarifies how the post-January-19-2025 acquisition date rule applies to rental real estate, cost segregation lookback studies, 1031 exchanges, and self-constructed improvements.
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IRS Notice 2026-11100% bonus depreciationOBBBA
Audit Defense10 min
STR Audit Defense 2026: Why Reconstructed Time Logs Fail and How to Prove Material Participation
IRS scrutiny of short-term rental material participation claims has intensified in 2026. This guide explains why reconstructed time logs fail examination, what a contemporaneous log needs to contain, and the documentation CPAs recommend for the 500-hour and 100-hour tests.
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short-term rentalSTR loopholematerial participation
Tax Strategy11 min
Net Investment Income Tax (NIIT) for Landlords 2026: The 3.8% Surtax Most Rental Owners Don't Plan For
Complete 2026 guide to the 3.8% Net Investment Income Tax on rental income. Covers MAGI thresholds, which rental income is subject, the real estate professional exception, the STR material-participation carve-out, and strategies to reduce or eliminate NIIT on Schedule E income.
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NIITnet investment income tax3.8% surtax
Depreciation10 min
Missed Depreciation on Rental Property? How to Catch Up Using Form 3115 (2026)
Forgot to claim depreciation on your rental property? IRS Form 3115 lets you recover all missed deductions in a single tax year — here's exactly how to do it.
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Form 3115missed depreciationcatch-up depreciation
Tax Strategy11 min
Converting Your Primary Residence to a Rental Property (2026): Taxes, Depreciation, and the Section 121 Exclusion
Complete 2026 guide to turning your primary residence into a rental. Covers the Section 121 capital gains exclusion timing, depreciation basis rules, recapture tax, and the tax traps that cost homeowners thousands when they rent out their old home.
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primary residence to rentalSection 121 exclusiondepreciation recapture
Depreciation8 min
Bonus Depreciation Calculator for Short-Term Rentals: How to Estimate Your 2026 STR Tax Savings
Step-by-step guide to calculating 100% bonus depreciation on short-term rentals in 2026. Worked examples, OBBBA rules, and how to use our free STR bonus depreciation calculator.
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bonus depreciation calculatorshort term rentalSTR bonus depreciation
Tax Strategy7 min
IRS Audit Red Flags for Rental Property Owners: What Triggers Scrutiny in 2026
Just filed your rental property taxes? Learn the 10 biggest IRS audit red flags for landlords in 2026, including Schedule E triggers, loss limitations, and documentation gaps that draw examiner attention.
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IRS auditrental property auditSchedule E audit
Tax Strategy6 min
Mid-Year Tax Planning Checklist for Rental Property Owners (2026)
Filed your taxes? Don't wait until next April. This mid-year tax planning checklist helps landlords maximize deductions, avoid penalties, and prepare for 2026 tax changes — including the new $40K SALT cap, 100% bonus depreciation, and Q2 estimated payments due June 16.
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mid-year tax planningtax planning checklistrental property
Tax Basics8 min
Vacation Rental & Airbnb Tax Guide for 2026: Schedule C vs. E, Deductions & Platform Reporting
Everything Airbnb and VRBO hosts need for 2026: Schedule C vs. E, 1099-K thresholds, the 14-day rule, and the deductions most short-term rental owners miss.
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Airbnb taxesvacation rentalVRBO
Tax Compliance6 min
1099-NEC Filing for Landlords: New $2,000 Threshold for 2026
The 1099-NEC filing threshold increased from $600 to $2,000 for 2026 under the OBBBA. Learn which payments require a 1099, when to file, and penalties for non-compliance.
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1099-NECOBBBAtax filing
Tax Basics8 min
Estimated Tax Payments for Rental Income: Quarterly Deadlines & Calculations (2026)
Learn how to calculate and pay quarterly estimated taxes on rental property income. Covers IRS deadlines, safe harbor rules, penalty avoidance, and when landlords must pay estimated taxes in 2026.
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estimated taxesquarterly paymentsrental income
Tax Strategy7 min
LLC for Rental Property: Tax Benefits, Formation & Protection (2026 Guide)
Should you put rental property in an LLC? Learn the real tax benefits, asset protection advantages, formation steps, costs, and common mistakes landlords make with LLCs in 2026.
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LLCrental propertyasset protection
Tax Basics7 min
Rental Property Closing Costs: What Is Tax Deductible in 2026
Learn which closing costs are tax deductible when you buy or sell rental property in 2026, including what you can deduct immediately, what gets added to your cost basis, and how to handle each line item on your settlement statement.
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closing costsrental property deductionscost basis
Tax Basics8 min
Home Office Deduction for Landlords: Can You Claim It in 2026?
Learn whether rental property owners can claim a home office deduction, the IRS requirements you must meet, how to calculate the deduction using both methods, and the gray areas that trip up landlords.
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home officerental deductionsSchedule E
Tax Strategy9 min
Real Estate Professional Status (REPS): Complete 2026 Guide to the 750-Hour Rule
Learn how to qualify for Real Estate Professional Status in 2026, including the 750-hour test, material participation rules, documentation requirements, and how REPS unlocks unlimited rental loss deductions.
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real estate professional statusREPS750-hour rule
Tax Basics7 min
Security Deposit Tax Treatment for Rental Property Owners (2026 Guide)
Learn when security deposits count as taxable rental income, how to report deposits you keep for damages or unpaid rent, and the IRS rules landlords must follow in 2026.
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security depositrental incomeSchedule E
Tax Basics7 min
How Rental Income Is Taxed in 2026: Complete Guide for Landlords
Learn exactly how rental income is taxed in 2026, including tax rates, deductions, depreciation, passive loss rules, and how to calculate your rental property tax bill step by step.
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rental income taxhow rental income is taxedrental property tax rate
Tax Deductions5 min
Rental Property Mileage Deduction 2026: Rates, Rules, and How to Track
The 2026 IRS mileage rate is 72.5 cents per mile. Learn how to deduct mileage for rental property trips, what qualifies, and how to keep records the IRS accepts.
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mileage deductionrental property mileageIRS mileage rate 2026
Tax Strategy8 min
12 Common Landlord Tax Mistakes That Cost Thousands (And How to Avoid Them)
Rental property owners lose thousands every year to these common tax mistakes. Learn the 12 most costly errors landlords make on Schedule E and how to fix them before you file.
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landlord tax mistakesSchedule E errorsrental property taxes
Tax Filing6 min
How to File a Tax Extension for Rental Property: 2026 Landlord Guide
Missed the April 15 deadline? Learn how to file Form 4868, what it means for your rental property taxes, estimated payments, and penalties to avoid as a landlord in 2026.
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tax extensionForm 4868rental property taxes
Tax Strategy8 min
Section 199A QBI Deduction for Rental Property: The 20% Pass-Through Deduction Explained
The Section 199A QBI deduction lets rental property owners deduct up to 20% of qualified business income. Learn qualification rules, safe harbors, income limits, and how OBBBA made it permanent.
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Section 199AQBI deductionrental property
Tax Strategy8 min
State-by-State Rental Property Tax Guide: Where Your State Differs from Federal Rules
State tax laws for rental property often diverge from federal rules on depreciation, Section 199A, and deductions. Learn which states conform, which don't, and how it affects your tax bill.
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state taxesrental propertybonus depreciation
Tax Strategy7 min
Passive Activity Loss Rules for Rental Property: The $25,000 Allowance Explained
Most rental losses are passive — but you may be able to deduct up to $25,000 against your regular income. Learn the MAGI phase-out, active participation test, and real estate professional exception.
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passive activity lossrental propertytax deductions
Deductions5 min
PMI on Rental Properties: The Overlooked Deduction Most Landlords Miss
Private mortgage insurance on rental properties is fully deductible on Schedule E with no income limits. Learn how this often-missed deduction works and how to claim it.
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PMImortgage insuranceSchedule E
Tax Strategy7 min
Repairs vs. Improvements on Rental Property: What You Can Deduct Immediately
The IRS treats rental property repairs and improvements very differently at tax time. Learn the BAR test, safe harbor rules, and how to classify common expenses to maximize your deductions.
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repairsimprovementstax deductions
Tax Filing6 min
Schedule E Line-by-Line Filing Guide for Rental Property Owners (2026)
A complete walkthrough of IRS Schedule E for reporting rental income and expenses. Learn which deductions go on each line and how to maximize your tax benefit.
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Schedule Etax filingrental income
Tax Strategy6 min
1031 Exchanges for Rental Property Investors: Rules, Deadlines, and Strategy
A complete guide to Section 1031 like-kind exchanges for rental property investors, including current rules after the One Big Beautiful Bill Act.
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1031 exchangelike-kind exchangecapital gains
Tax Strategy4 min
SALT Cap and Rental Properties: Why Your Property Taxes Are Fully Deductible
The $40,000 SALT deduction cap does not apply to rental property taxes. Here is why, and what rental owners need to know for 2025 and 2026.
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SALT capproperty taxesrental deductions
Tax Filing5 min
April 15 Tax Deadline: Last-Minute Rental Property Deduction Checklist
The 2025 tax filing deadline is April 15, 2026. Here is a checklist of rental property deductions to review before you file your Schedule E.
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tax deadlineSchedule Erental deductions checklist
Depreciation7 min
100% Bonus Depreciation Is Back: What Rental Owners Need to Know
The One Big Beautiful Bill Act permanently restored 100% bonus depreciation. Here is what rental property owners should understand.
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bonus depreciationOBBBATCJA
Tax Strategy7 min
Material Participation for STR Owners: The Complete Guide
Material participation determines whether your rental losses can offset active income. Learn the seven IRS tests and how to qualify.
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material participationSTRIRS tests
Tax Strategy6 min
5 Tax Tips Every Short-Term Rental Owner Should Know
From tracking expenses to leveraging the STR loophole, here are the most impactful tax strategies for Airbnb and VRBO hosts.
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STRtax tipsAirbnb
Tax Strategy5 min
The STR Loophole: How Short-Term Rental Owners Save on Taxes
The short-term rental loophole allows STR owners who materially participate to deduct rental losses against active income. Here is how it works.
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STR loopholepassive incomematerial participation
Cost Segregation6 min
What Is Cost Segregation? A Guide for Rental Property Owners
Cost segregation lets rental property owners accelerate depreciation and reduce taxable income. Learn how it works and whether your property qualifies.
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cost segregationdepreciationtax strategy
Depreciation6 min
Depreciation Basics for Rental Property Owners
Depreciation is one of the largest tax deductions available to rental owners. Learn how it works, what qualifies, and how to maximize it.
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depreciationMACRStax deductions