Rental Property Owners with books by building.
For owners of a few rentals or a commercial building who want rental property taxes done carefully and records that make next year easier.
Rental property taxes for a small portfolio look simple until the details pile up. A new roof, a refinanced loan, a tenant who left owing rent, and a property manager's year-end statement all need to land correctly on Schedule E. TreeStar sets up books by property, sorts repairs from improvements under the federal rules, keeps depreciation current for each building and its improvements, and prepares your return from records that already agree with the bank. If you rent short term, we review how the rules may apply to your situation before the return is prepared.
Where it gets complicated
- 01 Repair or improvement
A repair may be deductible in the year paid, while an improvement is generally depreciated over time. The federal rules and their safe harbor elections draw that line, and a guess either way causes problems later.
- 02 Short-term rental questions
Short average stays, the services you provide, and your own personal use can change how a short-term rental is treated for tax. The answer is fact-specific and worth reviewing before you file.
- 03 Records mixed with personal
Rent deposited to a personal account and repairs paid on a personal card make it hard to show what belongs to each property. Clean separation supports every line of Schedule E.
- 04 Depreciation left behind
Owners sometimes skip depreciation or lose track of it after a change in preparer. Depreciation that was allowable generally reduces basis at sale whether or not it was ever claimed.
How TreeStar helps
We build a QuickBooks Online file that tracks income and expenses for each property, with loans and tenant deposits in the right place.
→ ongoing_bookkeeping Classify spending correctlyEach month we sort repairs, improvements, and operating costs, and keep a depreciation schedule current for every building.
→ individual_tax Prepare your Schedule EWe prepare your return from reconciled records, with depreciation, carryforwards, and state differences accounted for.
→ w9_1099 Handle vendor paperworkWe collect W-9s from vendors who work on your rentals and help you evaluate which payments may call for a 1099.
→What you can expect
Income and expenses by property
Depreciation tracked for every building
A Schedule E built from reconciled books
Common questions
Can I deduct the new roof this year?
A roof replacement is usually treated as an improvement and depreciated, but the facts and the safe harbor elections matter. We review the invoices with you before the return is prepared.
I sold a rental. What should I bring you?
The closing statement, your original purchase records, a list of improvements, and prior depreciation schedules. Depreciation taken over the years is generally recaptured at sale, so a complete history matters.
Do I need a separate bank account for my rentals?
A dedicated account per property or per entity is not required, but it makes monthly reconciliation cleaner and each property's numbers easier to support.
Need a referral?
We work alongside the attorneys, consultants, and other specialists your industry relies on. Tell us what you need and we will make an introduction.
Holds exchange proceeds and manages exchange paperwork.
→ request_referral Cost segregation providerEngineering studies that support accelerated depreciation.
→ request_referral Real estate attorneyPurchases, leases, entities, and title questions.
→ request_referral Commercial lender or mortgage brokerFinancing for acquisitions, refinances, and development.
→Real Estate insights
How a 1031 exchange works for California property owners, from the 45- and 180-day deadlines to the yearly FTB 3840 filing for out-of-state property.
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How a cost segregation study works, when it may make sense, and how 100% federal bonus depreciation and California's separate rules shape the result.
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