Year-End Tax Preparation Guide for Rental Property Owners

Rentastic.io Newsletter | December 2025

Getting Ready for Tax Season: Your 2025 Rental Property Checklist

As we approach the end of 2025, it's time to prepare for tax season. Whether you manage one rental property ora full portfolio, proper preparation now can save you time, money, and stress when filing your 2025 taxes inearly 2026

Key Year-End Deadlines & Actions

Before December 31, 2025:

Maximize Your Deductions

• Complete any planned repairs or maintenance before year-end
• Pay property tax bills and outstanding vendor invoices
• Purchase necessary equipment or supplies for your properties
• Make final mortgage payments to maximize interest deductions

Review Your Property Performance

• Analyze which properties are most profitable
• Identify underperforming assets
• Plan capital improvements for 2026

Update Your Records

• Ensure all transactions are properly categorized
• Reconcile bank statements and credit card accounts
• Document any non-cash expenses (depreciation, mileage)
• Verify all rental income has been recorded

Essential Tax Documents to Gather

Income Documentation:

• Rental income records (all payments received)
• Security deposit tracking (deposits held vs. applied)
• Late fee income
• Other property-related income

Expense Documentation:

• Mortgage interest statements (Form 1098)
• Property tax bills
• Insurance premiums (property, liability, flood)
• Property management fees
• Maintenance and repair receipts
• Utility bills (if landlord-paid)
• HOA fees
• Legal and professional fees
• Advertising costs
• Travel expenses (mileage logs for property visits)
• Office supplies and software subscriptions

Property Information:

• Purchase documents and closing statements
• Capital improvement records
• Depreciation schedules
• 1099 forms for contractors (if you paid $600+ in 2025)

Top Tax Deductions Rental Property Owners Often Miss

1. Home Office Deduction - If you manage properties from a dedicated home office space
2. Mileage & Auto Expenses - Document trips to properties, hardware stores, and meetings with contractors (IRS rate: $0.70/mile for 2025)
3. Professional Development - Real estate education, seminars, books, and subscriptions
4. Technology & Software - Property management software, accounting tools, and cloud storage
5. Depreciation - Your largest non-cash deduction (typically 27.5 years for residential)
6. Section 179 Deduction - Immediately expense certain property improvements up to $1,160,000
7. Startup Costs - If you started a rental business in 2025, deduct up to $5,000 in startup expenses
8. Credit Card Interest - Interest on cards used for rental property expenses

How Rentastic.io Simplifies Your Tax Preparation

🎯Automated Transaction Categorization

Your transactions are automatically categorized by type (repairs, maintenance, utilities, etc.), making it easy to identify deductible expenses at tax time.

� Comprehensive Financial Reports

Generate detailed Profit & Loss statements by property or across your entire portfolio. Export reports in formats your CPA can use immediately.

🔗 Bank Account Integration

With Plaid integration, your rental income and expenses are automatically synced, reducing manual data entry and ensuring nothing is missed.

📁 Document Storage & Organization

Store receipts, invoices, and important documents directly in Rentastic.io, organized by property and expense category.

📈Year-Over-Year Comparisons

Track how your rental performance compares to previous years, helping identify trends and opportunities.

�� Real-Time Insights

Monitor your rental property performance throughout the year, not just at tax time, enabling better financial decisions.

Tax Preparation Timeline

Now Through December 31, 2025:

• Complete year-end review in Rentastic.io
• Categorize all transactions
• Upload final receipts and documentation
• Generate preliminary financial reports

January 2026:

• Request 1098 forms from mortgage lenders
• Prepare 1099-MISC forms for contractors (due January 31)
• Schedule appointment with your tax professional
• Export comprehensive reports from Rentastic.io for your CPA

February - April 2026:

• File your tax returns (April 15 deadline)
• Pay any estimated taxes due for 2026 Q1
• Set up quarterly estimated tax payments if needed

Pro Tips from Successful Rental Property Owners

"Start preparing now, not in March." The most successful investors review their books monthly and are tax ready year-round.

"Separate personal and business expenses strictly." Use dedicated accounts and credit cards for rental activities to simplify tracking and audits.

"Work with a real estate tax specialist." A CPA familiar with rental property taxation can often save you more than their fee in discovered deductions.

"Document everything." The IRS requires proper documentation. A well-organized system (like Rentastic.io)is your best defense in an audit.

"Plan for estimated taxes." If you owe more than $1,000 in taxes, you'll need to make quarterly estimated payments to avoid penalties

New for 2025 Tax Year

Changes to Be Aware Of:

Bonus Depreciation Phase-Out: Bonus depreciation decreased to 40% in 2025 (down from 60% in 2024).Plan accordingly for capital purchases.

Standard Mileage Rate: The IRS business mileage rate for 2025 is $0.70/mile (up from $0.67 in 2024).

Section 199A Qualified Business Income Deduction: Continue to take advantage of this 20% deduction on rental income if you qualify.

Getting Started: Your 3-Step Action Plan

Step 1: Log into Rentastic.io Today

Review your transaction history and ensure all income and expenses for 2025 are properly recorded and categorized.

Step 2: Generate Your Reports

Run your year-end Profit & Loss statements and export them in your preferred format (PDF, Excel, CSV).

Step 3: Schedule Time with Your Tax Professional

Share your Rentastic.io reports with your CPA and discuss tax-saving strategies for 2026.

Helpful Resources

IRS Publications:

• Publication 527: Residential Rental Property
• Publication 946: How to Depreciate Property
• Schedule E: Supplemental Income and Loss

Rentastic.io Support:

• Help Center: [support.rentastic.io]
• Tutorial Videos: Financial Reporting & Tax Preparation
• Live Chat: Available for premium subscribers

Questions About Tax Preparation?

Our support team is here to help you navigate Rentastic.io's features for tax season. While we can't provide tax advice (consult your CPA for that), we're experts at helping you organize your rental property financials.

📧 Contact Support: support@rentastic.io

💬 Live Chat: Available in your dashboard

📚 Help Center: https://support.rentastic.io

Looking Ahead to 2026

Once you've completed your 2025 taxes, consider these strategies for the year ahead:

• Set up automated monthly report reviews
• Establish quarterly tax payment reminders
• Create a maintenance and improvement budget
• Track expenses in real-time, not at year-end
• Leverage Rentastic.io's analytics for better investment decisions

Remember: The best time to prepare for next year's taxes is now. Staying organized throughout 2026 will make next year's tax season effortless.

Year-End Special: Upgrade Your Tax Preparation

Ready to take your rental property management to the next level?

Explore Rentastic.io's premium features designed to save you time and maximize your tax deductions:

• Advanced reporting and analytics
• Unlimited property tracking
• Priority customer support
• Enhanced document storage
• Integration with leading accounting software

Visit your account dashboard to learn more.

Wishing you a profitable year ahead!

The Rentastic.io Team

Disclaimer: This newsletter provides general information about rental property tax preparation and is notintended as tax, legal, or financial advice. Tax laws are complex and change frequently. Please consult with aqualified tax professional regarding your specific situation.

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