Guide for rental owners
Keeping rental records: what to save and for how long
Good records protect every deduction you take. Here's what to keep.
Every deduction is only as strong as the proof behind it. If the IRS ever asks, a deduction without a receipt can be thrown out. The good news: digital copies are fine.
What to keep
- Receipts and invoices for every expense, or the bank or card statement line if there's no receipt.
- Leases and records of rent received and security deposits.
- Your closing statement from when you bought (it sets your basis).
- Records of every improvement: what, when and how much.
- Your depreciation schedule and last year's tax return.
- A mileage log for trips to the property.
- 1099s and W-9s for your contractors.
How long to keep them
| Record | Keep it at least |
|---|---|
| Everyday receipts, statements, mileage | 3 years after you file that year's return |
| If income was underreported by more than 25% | 6 years |
| Purchase, improvement and depreciation records | As long as you own the property, plus 3 years after you file the return for the year you sell |
Why it matters
$2,000 of repairs with no receipts → about $640 of tax savings at risk at a 32% rate, from paperwork that takes seconds to keep.
Tethered Properties does this for you
In Tethered Properties, every entry can carry its receipt, your ledger flags anything missing proof, and you can download all your books and receipts any time.
This guide is general information for rental owners, not tax advice. Tax rules change and every situation is different; your CPA or tax advisor knows your full picture. Figures are estimates.