What Tax Form Do I Need for My Rental Income? | Advice for the Charlotte Landlord
One of the most common questions I get from Charlotte-area rental property owners is simple: “What tax form do I need for my rental income?”
It’s a smart question, because rental income can feel confusing at first, especially if you’re a newer landlord or you’ve recently turned a former primary residence into a rental. The good news is that rental income reporting is usually straightforward once you understand the basics.
This article is general educational information, not tax advice, but it will help you know what forms to expect, what information to track, and what to discuss with your CPA.
The Most Common Form: Schedule E (Form 1040)
For most individual rental property owners, rental income and expenses are reported on Schedule E (Supplemental Income and Loss), which is filed along with your personal federal tax return (Form 1040).
Schedule E is where you typically report:
Rental income collected
Operating expenses (repairs, management fees, insurance, etc.)
Depreciation
Net profit or loss from the property
If you own a standard long-term rental in the Charlotte area, Schedule E is usually the primary form you’ll use.
What About an LLC?
Many owners assume that having an LLC changes how rental income is taxed. In many cases, it doesn’t.
If you own the property in a single-member LLC, the IRS often treats it as a “disregarded entity,” meaning rental income still flows through to your personal tax return and is commonly reported on Schedule E.
That said, how you structure ownership can impact liability and insurance, so it’s worth discussing with your CPA and attorney.
Will I Receive a 1099 for My Rental Income?
This is where a lot of landlords get tripped up.
Depending on how rent is collected, you may receive a Form 1099 at the end of the year summarizing rental income. This is common when rent is processed through a third party or collected on your behalf.
At Priority Property Group, we provide our owner clients with a year-end 1099 that summarizes rental income collected, along with detailed reporting throughout the year to make tax preparation simpler and more organized.
A 1099 does not always mean you owe additional tax. It’s an informational form that helps ensure income is accurately documented and reported.
What Expenses Should Charlotte Landlords Track?
Even if your CPA handles the filing, owners should track expenses throughout the year so deductions are not missed.
Common rental deductions may include:
Repairs and maintenance
Leasing fees
Insurance
Property taxes
HOA dues (if applicable)
Utilities (if owner-paid)
Advertising and marketing
Travel related to managing the property (ask your CPA)
Having organized records makes tax time smoother and reduces the chance of missed deductions.
Depreciation: The Most Overlooked Rental Benefit
Depreciation is one of the most powerful tax benefits available to rental property owners. Residential rental properties are typically depreciated over 27.5 years.
Depreciation can reduce taxable income even when your property is cash-flow positive, which is one reason real estate can be such an effective long-term investment.
Your CPA can help you determine the correct depreciation schedule and ensure it’s being handled properly.
What If I Sold a Rental Property?
If you sold a rental property in the past year, your tax filing may be more complex. Depending on your situation, you may be dealing with:
Capital gains
Depreciation recapture
Potential 1031 exchange reporting (if applicable)
This is an area where professional tax guidance is strongly recommended.
What Should I Give My CPA Each Year?
To keep tax filing simple, most landlords should provide their CPA with:
Total rental income collected
A list of expenses (or a categorized report)
Mortgage interest statement (Form 1098, if applicable)
Property tax amounts
Any major improvements made during the year
Your year-end management reporting and 1099 (if provided)
The more organized your information is, the faster and cleaner tax prep becomes.
Final Thoughts
For most Charlotte-area landlords, rental income is reported on Schedule E, and a year-end 1099 may be provided depending on how rent is collected and reported. The key to reducing stress at tax time is staying organized throughout the year and working with a CPA who understands real estate.
If you’re unsure which forms apply to your situation, the best move is to ask your tax professional early, rather than waiting until filing season.
Priority Property Group
2217 Matthews Township Pkwy, Ste D, Matthews, NC, 28105
704-800-3711
www.ppgmanagement.com
