According to IPX1031’s annual tax survey, 28% of Americans don’t know their tax filing deadline. Different IRS forms have deadlines scheduled throughout the year, and how you structure your rental property business determines which forms you need to file and when. It’s no wonder one in three business owners struggle with filing taxes for their company. That’s why we’ve put together this overview of the most common forms you may need to file for your rental property.
Disclaimer: This article focuses on forms for rental property owners who do not have employees.
Note: On October 1 and 11, 2024, the IRS announced tax-relief measures for individuals and businesses in parts of Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia that were affected by hurricanes Helene and Milton. These taxpayers have until May 1, 2025, to file federal tax returns and make payments. Refer to the IRS announcements regarding Helene and Milton for full details.
Form 1040
Form 1040 is the most commonly used IRS form. This is what individuals use to file their annual income tax returns. Plus, business owners and employees use Form 1040 to declare their filing statuses, take deductions, claim credits, and calculate the amount they owe the IRS. Unless you are a tax-exempt individual, you must file Form 1040.
This year, Form 1040 is due on April 15.
Schedules for Form 1040
Form 1040 doesn’t cover the profit and loss reporting for sole proprietors. Self-employed business owners use different schedules to provide information in addition to Form 1040.
Schedule C
If you are a sole proprietorship, you’ll attach Schedule C to your Form 1040 each year. This reports the income or loss and all expenses related to your business. Real estate investors who qualify as real estate professionals use this form.
Pro tip: When you offer your tenants substantial additional services, like catering, daily cleaning, or concierge options, you’re more likely to need Schedule C.
Schedule E
If you own rental property in your name, with your spouse, or through a single-member LLC, use Schedule E to report income or losses from your rental property. If you have income reported on Schedule K-1 from a partnership or S corporation, you’ll also file Schedule E.
For a more detailed review of Schedule E, please refer to REI Hub’s related article, “Understanding the Schedule E for Rental Properties.”
Schedule ES
If you have income that isn’t subject to withholding, such as rent, self-employment earnings, alimony, etc., you’ll file Schedule ES along with your Form 1040. Use this schedule to calculate and pay estimated taxes. Unlike Schedules C and E, when you have estimated taxes, you must make payments on a quarterly basis. Your payments are due on
- April 15,
- June 16,
- September 15, and
- January 15 of next year.
Form 1065
The US Return of Partnership Income (Form 1065) is for those who file as a partnership or an LLC electing to be treated as a partnership (multimember LLC). Use Form 1065 to report profits, losses, deductions, and credits.
Businesses must have Form 1065 filed by March 15.
Schedule K-1
Schedule K-1 reports each partner’s or shareholder’s portion of income, losses, deductions, and credits. This is filed in addition to Form 1065.
Form 1099-NEC
Did you pay an independent contractor or freelancer last year to work on your rental property or business? If so, you may have to issue the contractor a 1099-NEC if you paid them $600 or more during the calendar year. Form 1099-NEC is similar to a W-2, except it reports nonemployee compensation.
January 31 is the deadline for sending 1099-NEC forms to independent contractors.
Pro tip: To ensure your 1099s are correct, request that your contractors complete and return a W-9 before you issue their payment. Depending on their business structure, you may not need to issue them a 1099. A completed W-9 helps you determine whether your contractors should receive a 1099.
Form 1099-MISC
If you rent space for your rental property business, you may need to issue a 1099-MISC to your landlord if your rent totals $600 or more annually.
Form 1099-K
The payment settlement entity must report on Form 1099-K payments exceeding a threshold of $600 made with a credit card, gift card, or payment card. Certain other types of payments, including third-party network transactions like Venmo, PayPal, or Zelle, also qualify for this reporting.
Form 1120
To report income or losses for a C corporation or an LLC electing to file as a C corporation, you’ll file Form 1120, the US Corporation Income Tax Return.
Since C corporations can choose between a calendar year, fiscal year, or 52–53-week tax year, there isn’t a single deadline for filing Form 1120. Generally, the filing deadline is the 15th day of the fourth month after the end of the corporation’s tax year. However, corporations with a fiscal tax year ending on June 30 must file by the 15th day of the third month after the end of its tax year.
Form 1120-S
S corporations and LLCs electing to file as S corporations file Form 1120-S to report income, gains, losses, deductions, and credits. Unlike Form 1120, which C corporations use to calculate their taxes due, Form 1120-S is an information return. S Corporations must also prepare a K-1 for their shareholders to include with their individual returns.
As with Form 1120, the filing deadline for Form 1120-S depends on the company’s tax year. File by the 15th day of the third month following the end of the tax year.
Form 4562
To report depreciation and amortization associated with your rental property business, use Form 4562. Depreciation is an easily missed deduction during tax time. Be sure to ask your tax preparer about the best way to calculate it for your rental property since depreciation applies to equipment, furniture, fixtures, leasehold improvements, buildings, and more.
You are required to file Form 4562 if any of the following situations apply to you if you claim:
- a Section 179 deduction
- depreciation for property placed in service during the current year
- depreciation on any vehicle or other property
- a deduction for a vehicle listed on a form other than Schedule C
- amortization costs that begin during the current taxable year
The deadline for filing Form 4562 depends on which business return you file.
Form 4868
To file an extension for your personal taxes, use Form 4868. Even though you’re requesting an extension, you’ll still need to provide four items:
- an estimate of your total tax liability for the prior year
- the total of your payments made to date
- an estimate of the balance due
- a payment for the remaining balance
Please note that Form 4868 is due by April 15, 2025.
Form 7004
If you need an extension to file your business taxes, use Form 7004.
File for your extension on or before the due date of the business tax return that applies to your business.
How REI Hub Can Help
Taxes can be confusing, so working with a tax preparer is important. They’ll help you ensure your business is structured in the most beneficial way for you, and they’ll ensure that you’re making the most of your business’s deductions and credits.
Ultimately, you are responsible for your personal and business taxes, so keep track of which forms and deadlines apply to your situation. Set calendar reminders, not just for the filing deadlines but also for the days you need to work on gathering information and preparing the forms.
Need some help with the bookkeeping side of your rental property business? With REI Hub, you can record your income and expenses for multiple properties and then run a Schedule E report for each of them. Plus, you can track fixed assets, review CPA-approved financial reports—and give your CPA full access to your books, making tax time much easier. Start your free trial today!
