Rental Property Tax Preparation,
Without the Stress
Owning a rental property makes your tax return more involved than reporting income on a single form. Rental income and expenses are listed on a separate schedule, with deductions that may include mortgage interest, property taxes, insurance, repairs, management fees, and travel to the property. Depreciation is the area many owners mishandle. You are generally expected to deduct part of the building’s cost each year, and that depreciation may be recaptured and taxed when you sell, even if you did not claim it. Rental losses are subject to limits, short-term rentals may follow different rules, and a sale can create both gain and depreciation recapture. Careful reporting can make a rental highly tax efficient, while poor reporting can overstate income and leave valuable deductions unclaimed.
Rental property owners can work with us from our West Omaha office at 12305 Gold Street. Before we begin, you receive clear pricing and know who will handle your return. Instead of working with a seasonal preparer or being passed between staff members, you communicate directly with one credentialed professional throughout the process. Your return is prepared by a CFP® professional, CFA® charterholder, and Enrolled Agent. We remain responsive throughout the year, including during the busiest weeks of tax season. When the return is finished, we provide a recorded video explaining the income, deductions, depreciation, and other key figures. Payment is not due until your return is complete and ready to file.
Ready to Get Started
Choose the way that works best for you.
Some Situations That Might Apply to You If You Own a Rental Property
You rent out a property
Renting out a property requires you to report both the income it produces and the expenses tied to it. Many owners overlook deductions such as mortgage interest, property taxes, insurance, repairs, maintenance, management fees, and mileage for trips to the property. Depreciation often has the greatest effect on the return. It allows you to deduct part of the building’s cost each year, reducing taxable rental income. It is also important to claim it correctly because depreciation may be taxed when the property is sold, even if you failed to take the deduction. We identify eligible expenses, separate repairs from improvements, and calculate depreciation so it benefits you now without creating an unexpected issue later.
You turned a home into a rental, or a rental into a home
Changing a property from personal use to rental use, or from rental use back to a home, triggers rules that are easy to miss. When a former residence becomes a rental, its basis for depreciation is generally the lower of its adjusted cost or fair market value on the conversion date. Depreciation begins from that point. When a rental becomes your residence, the years it was rented can affect how much gain may be excluded when the property is later sold. In either direction, the conversion date establishes figures and timelines that shape the eventual sale. We document the correct values when the change occurs, which is much easier than rebuilding the history years later.
You sold a rental property
Selling a rental property can trigger two separate tax costs, and planning before closing can make a meaningful difference. Any gain on the sale may be taxable, and the depreciation claimed over the years can also be recaptured and taxed separately. That second amount often surprises owners who have not tracked how much depreciation accumulated. Several strategies may help. A like-kind exchange can defer the tax when the proceeds are reinvested in another qualifying property, an installment sale can spread the gain over the years payments are received, and suspended passive losses may become available to offset income from the sale. These options generally must be arranged before closing, so the planning conversation should happen early.
We also help with related situations, including selling a home, self-employment, and quarterly estimated taxes. Or browse every income tax situation we help with.
Prefer to Learn
More First
Take a quick tour of how we work and what makes us different.
Why Choose MTS