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ProAxis Tax & Accounting Services

Real Estate Investor & Landlord Tax Intake

Schedule E — Rental Income • Form 8825 — Entity Rentals

This is a scoping intake — share what you'd like our CPA team to know about your rentals, flips, and entities before we prepare your returns. We do not collect Social Security numbers, dates of birth, full EINs, or government ID through this form. Sensitive items are gathered through our secure client portal once we begin the engagement.

Before You Begin

Six quick steps: investor profile, portfolio, income and records, transactions, tax status, and disclosures. Estimates are fine — your CPA reconciles everything against your records. We never collect Social Security numbers, full EINs, dates of birth, or government ID through this form.

How Rental Income Is Reported

Most individual landlords — and single-member LLCs, which are disregarded for tax — report rentals on Schedule E. Partnerships and multi-member LLCs file Form 1065 with Form 8825 and issue each partner a K-1. Not sure which applies? Pick "Not Sure" in Step 1 and we will map it with you.

Depreciation Basics

Under IRC §168(c), residential rental property depreciates over 27.5 years and nonresidential over 39 years. Land is not depreciable, so closing records matter. Depreciation also reduces your basis, which affects the gain you report when you sell.

Short-Term Rentals & Real Estate Professional Status

An average guest stay of 7 days or less can change how a rental is classified (Treas. Reg. §1.469-1T). Hotel-like guest services can too. Step 3 asks about both.

Real Estate Professional Status (IRC §469(c)(7)) requires more than 750 hours per year in real property trades. Those hours must also be more than half of your working time. Hour logs are the evidence that carries a claim — Step 5 collects what we need to review the test.

Common Investor Filing Mistakes
  • Missed depreciation — the law generally treats you as if you claimed it when you sell. We rebuild schedules where needed.
  • No records of improvement basis — deductions get lost and gains get overstated.
  • No 1099s to rehab contractors — payments to unincorporated contractors often require Form 1099-NEC.
  • Commingled accounts — a separate rental account keeps records defensible.
  • Blown 1031 timelines — exchanges carry strict identification and closing deadlines. We help clients evaluate timing before contracts are signed.

After You Submit

Your CPA team reviews this intake within one business day. We follow up to confirm scope and request records — prior returns, depreciation schedules, closing statements, and property-level income and expenses. Everything moves through our secure client portal.

Real Estate Investor Taxes: Common Questions

Does my LLC need its own tax return?
It depends on how the LLC is taxed. A single-member LLC is disregarded — its rentals go on Schedule E of your Form 1040. An LLC with two or more members generally files Form 1065, with rentals on Form 8825. An LLC that elected S-Corp status files Form 1120-S. If you are not sure, select 'Not sure' on the intake and we will map your structure. Outcomes vary; this is general information, not tax advice.
What is depreciation and why does it matter?
Depreciation is a yearly deduction for the cost of a building, spread over its recovery period. Under IRC §168(c), residential rentals depreciate over 27.5 years and nonresidential property over 39 years. It is often the largest deduction a rental produces. It also reduces your basis, which affects your gain when you sell. Outcomes vary; this is general information, not tax advice.
What is the short-term rental strategy I keep hearing about?
Average guest stays of 7 days or less can change how a rental activity is classified. That concept comes from Treas. Reg. §1.469-1T(e)(3)(ii)(A). With material participation, losses from the activity may be treated differently than typical rental losses. The rules are fact-specific, and records of hours and stays matter. We help clients evaluate whether the treatment fits their facts. Outcomes vary; this is general information, not tax advice.
What is Real Estate Professional Status?
Real Estate Professional Status is a test under IRC §469(c)(7). Under IRC §469(c)(7)(B), you need more than 750 hours per year in real property trades or businesses. Those hours must also be more than half of your total working time. Qualifying can change how rental losses are treated on your return. Hour logs are essential if you claim it. Outcomes vary; this is general information, not tax advice.
How does a 1031 exchange work?
A 1031 exchange lets an investor trade one investment property for another. Tax on the gain may be deferred — not erased. The process runs through a qualified intermediary and carries strict identification and closing deadlines. Missing a deadline can make the whole gain taxable. We help clients evaluate exchanges before contracts are signed. Outcomes vary; this is general information, not tax advice.
What is a cost segregation study?
A cost segregation study breaks a building into components with shorter recovery periods. That can move depreciation deductions into earlier years. A study fits some portfolios better than others, and study quality matters. We help clients evaluate whether one makes sense for their holdings. Outcomes vary; this is general information, not tax advice.
What if I never claimed depreciation?
When you sell, the tax law generally treats you as if you had claimed it anyway. That makes catching up important. Missed depreciation can often be caught up through an accounting-method change on Form 3115. This is a common cleanup project for new clients. Flag it in Step 4 and we will review your prior returns. Outcomes vary; this is general information, not tax advice.
What documents will you request after I submit?
Start with the intake — you do not need documents to begin. After you submit, we typically request prior returns, depreciation schedules, closing statements, mortgage interest statements (Form 1098), and property-level income and expense records. Short-term rental hosts should also gather platform statements and stay logs. Everything is uploaded through our secure client portal.

Why Real Estate Investors Choose ProAxis

Real Estate Tax Specialists

Schedule E, Form 8825, depreciation schedules, and short-term rental classification — handled by a licensed CPA team.

Real estate CPA services →

Investor Bookkeeping

Property-level books, separate accounts, and clean records that hold up at tax time and when you sell.

Real estate investor bookkeeping →

Multi-State Filings

Out-of-state rentals, nonresident returns, and credit coordination across NJ, NY, PA, and beyond.

Multi-state tax services →