Checklist for acceptable proof of rental losses
What you need to reply quickly and completely to your letter using our Respond to Department Notice online service:
- a digital copy—scanned or uploaded from your phone—of the documentation below, and
- an Individual Online Services account. (Log in or create an account.)
|You must provide||Notes|
|copy of your Schedule E, Supplemental Income and Loss, from your federal income tax return for the tax year noted on your letter||If you are not renting at Fair Market Value, you can only claim the expenses up to the rental income claimed.|
|copies of all documents described below that apply to the deductions you claimed|
|For rental income, you must also send us the following||Notes|
|completed questionnaire (Form DTF-973.1-A, Federal Schedule E Rental
Real Estate Loss Questionnaire)
|If you reside in the building, please provide the number of the apartment that you are renting (for example, Apt. 22B).|
|copies of all leases showing the total rent you collected each month for the tax year in question|
|bank statements, canceled checks, or other proof of rental income received|
|if you are renting through Section 8:
|if you did not rent the rental property for the entire year, verifiable proof that you attempted to rent the property|
|For rental expenses, you must send us the following||Notes|
|if you claimed any mortgage interest and real estate taxes, all Forms 1098 (Mortgage Interest Statement) issued by your lender||If the taxes you paid are not shown on Form 1098, provide copies of tax receipts and canceled checks.
If your Form 1098 was issued in more than one name, including yours, please provide verifiable proof of the portion you are claiming.
If you paid mortgage interest to an individual, provide:
|if you are claiming repairs:
||Receipts must indicate which unit or apartment number the repair was for.
Be sure that you are claiming a repair and not a capital improvement.
|if you are claiming utilities on a property you also reside in:
|if you are claiming mortgage interest, real estate taxes, insurance, and depreciation on a property where you also reside, verification that you have prorated these expenses between personal and rental expenses||If you have claimed a disproportionate amount of these expenses on your Schedule E, please advise and we will adjust accordingly.|
|if you are claiming other expenses:
|We cannot accept the following|
|X||bank statements without corresponding receipts showing the items purchased|
|X||handwritten or typed invoices without verifiable proof of payment|
Remember: You don't need a scanner to make copies of your documentation; use your smartphone to take a digital picture.