Although the last thing many people want to think about is taxes, it can pay to start planning ahead, especially for investors who own rental property in their portfolio.

While it’s possible to use a spreadsheet like Microsoft Excel to keep track of rental income and expenses for rental property taxes, most investors eventually upgrade to a more user-friendly system. That’s because spreadsheets require time-consuming manual data entry, and it can be easy to overlook a valuable deduction, even with just one rental property.

With tax season around the corner, now might be the perfect time to begin using rental property tax software to automatically track income, expenses, and property performance and export tax-ready financials when tax time rolls around.

Here are 9 of the best tax software and accounting solutions for rental property. The criteria used to arrive at these rankings include tax preparation, reporting, expense tracking, cost, company history in the market, and reputation for reliability and customer service.

Stessa

Stessa is ranked as the best overall accounting and reporting tool for landlords, according to Landlord Gurus, a company that has over 30 years of experience providing expert advice on the complex issues facing landlords and property managers, such as tax preparation.

Landlord Gurus describes Stessa as the best asset management and accounting software for real estate investors, with features including smart money management, automated income and expense tracking, rent collection, tenant screening, and personalized reporting. In addition to its easy-to-use online platform, Stessa gives investors mobile access with iOS and Android applications. 

Stessa securely imports, categorizes, and indexes all your expenses seamlessly. Connect to banks, lenders, credit cards, and property managers to see all your data in one place.

Stessa provides a full suite of dashboards and reports, all purpose-built for landlords. Key reports are interactive and clickable, allowing you to quickly understand which underlying transactions are included in each calculation.

To make tax time even more of a breeze, the Stessa Tax Center has helpful how-to articles, tax resources created in partnership with The Real Estate CPA, and a TurboTax discount exclusively for members of the Stessa Community.

Beyond helping you with your accounting, Stessa also offers landlords:

• Automated accounting tools: Replace cumbersome spreadsheets and easily track income and expenses. Stessa automates the process of categorizing transactions, reducing time spent on manual data entry.
• Manual expense tracking: Enjoy precise record-keeping of all property-related expenses, from maintenance costs to insurance fees, for a comprehensive view of property expenditures.
• One-click smart receipt scanning: Quickly and accurately add expense receipts to your property records, reducing the risk of losing or misplacing vital receipts.
• Mileage tracking: Track all travel related to your property management efforts for accurate expense reporting. This feature is particularly beneficial for tax purposes, as you can sometimes deduct these costs from taxable income.
• Automated bank feeds: Connect unlimited bank accounts for real-time income and expense tracking so you can manage your cash flow effectively and stay on top of your financial situation.
• Centralized dashboard with key metrics and complete chart history: Access a clear real-time overview of your property performance. The dashboard displays critical metrics and historical data in an intuitive, easy-to-understand format.
• Rental applications: Manage tenant applications efficiently and effectively by streamlining the process of publishing vacancies, and collecting and reviewing applications.
• Tenant screening: Use a proprietary approach with RentPrep for comprehensive tenant checks, including a full credit report, background check, and more. For additional screening, landlords can add income verification or judgment and liens, increasing the odds of selecting reliable tenants.
• Online rent collection: Automate your rent collection process, including payment reminders and late fees, reducing the likelihood of missed or late payments.
• Maintenance tracking: Tenants can submit maintenance requests directly in Stessa – no more texts or phone calls.
• Landlord banking: Open FDIC-insured bank accounts and enjoy a more efficient way to manage your property-related finances. You can also earn more than 10x the national average interest rate on every dollar of deposits.*
• Mobile app (iOS and Android): Utilize Stessa’s mobile app to help you manage your properties on the go. You can categorize transactions, check key metrics, scan receipts, and view your portfolio from almost anywhere, anytime.
• eSigning: Simplify lease signing and other document execution with integrated eSignature capabilities. This feature makes it easier for landlords and tenants to sign important documents, reducing the need for in-person meetings.

Stessa has a robust free option to use, in addition to several paid plans for investors who need more advanced features.

You can always start with the Essentials plan and upgrade to a paid plan as your portfolio expands and your needs evolve.

Get started with Stessa today for free.

TurboTax

TurboTax is a tax preparation software that uses a guided, question-and-answer format to help individuals and small business owners file their federal and state income tax returns.

For landlords, the software (specifically the Premier versions) provides dedicated tools to report rental income and manage complex Schedule E filings. It automatically calculates rental property depreciation, identifies deductible expenses like repairs and mortgage interest, and allows users to import financial data directly from bank accounts. Additionally, it offers step-by-step guidance for setting up new rentals, determining fair market value, and handling the sale of investment properties.

To make investment and rental property filings, you’ll need the Premier plan of TurboTax, which currently costs $105. 

Pros

• Popular tool for guided tax filing
• Specifically designed to walk landlords through complex tasks like property depreciation and fair market value assessments

Cons

• The “Premium” tier required for rental property is expensive, and it functions as a once-a-year filing tool rather than a daily property management system

RentRedi

Landlord Gurus ranks RentRedi as the runner-up to Stessa. The easy-to-use mobile app for iOS and Android is an all-in-one solution for landlords, including vacant property marketing, tenant screening, tenant lease agreement signing and storage, online rent collection, and tax-ready IRS Schedule E report generation.

RentRedi subscription plans cost $5-$29.95 per month, with a discount when paying annually. 

Pros

• Solid mobile-first experience for managing tasks on the go
• Generates IRS-ready Schedule E reports to simplify year-end transitions

Cons

• Full-service accounting requires a paid add-on (REI Hub), which can increase the total monthly cost for landlords who need deep financial tracking

TaxSlayer Classic

TaxSlayer Classic is a budget-friendly, cloud-based tax filing service that offers full access to all IRS forms and schedules, including those required for rental properties, without forced upgrades.

For landlords, it provides a dedicated section to complete Schedule E, where you can report rental income and itemize ordinary expenses like mortgage interest, repairs, and property taxes. The software includes built-in tools for calculating depreciation and allows for the direct import of 1099-MISC forms to streamline data entry. 

Pricing is $22.99 for federal filing, plus $39.99 for each state tax return.

Pros

• Budget-friendly
• Unlike other tax filing software, it includes all necessary rental property forms (Schedule E) in its base paid tier without forcing a “Premium” upgrade

Cons

• Full-service accounting requires a paid add-on (REI Hub), which can increase the total monthly cost for landlords who need deep financial tracking

Cash App Taxes

Cash App Taxes (formerly Credit Karma) is free for both state and federal returns and is a worthy choize for experienced filers who know how to maximize their own credits and deductions. 

While being free is a definite advantage, there are a couple of potential drawbacks to be aware of. To begin using Cash App, the application must be downloaded to an iPhone, then the software can be accessed from either an iPhone or a computer. Unfortunately, Cash App is only available on the App Store for iPhone. 

Also, investors who own real estate in a limited liability company (LLC) or S corporation are unable to file a Schedule K-1 form with Cash App, so they will need to consider other options, such as the Stessa-TurboTax combo.

Pros

• Completely free for both federal and state returns, even with rental income
• Features a clean, modern interface that is easy for tech-savvy users.

Cons

• Does not support complex business structures like LLCs or S-corps (Schedule K-1)
• Mobile-first requirement can be frustrating for those who prefer desktop bookkeeping

TaxSlayer Self-Employed

TaxSlayer Self-Employed is specifically designed for small-business owners who file both a 1099 and W-2, as some larger real estate investors do. According to The College Investor, TaxSlayer Self-Employed is premium tax-filing software at a much lower price than companies like H&R Block charge. 

The software goes beyond basic tax filing of income and expenses and may be a good match for investors who are concerned with asset depreciation, business structures, and individual retirement plans. TaxSlayer Self-Employed also supports IRS Schedule C, which is used to report profit or loss from a sole proprietorship business. 

Pricing for TaxSlayer Self-Employed is $52.99 for a federal return, with each state tax return costing an additional $39.99.

Pros

• Provides a middle ground for investors with mixed income (W-2 and 1099), offering specialized support for Schedule C and asset depreciation at a lower price than “big name” competitors

Cons

• While cheaper than TurboTax, it still lacks the year-round property management features (like rent collection) found in dedicated landlord software

Rentec Direct

Landlord Gurus ranks Rentec Direct as the best tax preparation option for both DIY landlords and property management companies. Features include leasing and management, tenant screening, operations management, property and tenant accounting, and Schedule E tax reports.

Rentec Direct pricing for for up to 25 units is $50 per month, with rates increasing by unit count thereafter.

Pros

• Offers professional-grade trust accounting, which is vital for property managers who handle funds for other owners
• Includes Schedule E reporting

Cons

• The interface can feel a bit dated compared to modern apps
• Pricing structure is less favorable for landlords with only one or two units

AppFolio

AppFolio has modules for everything a property manager might need, including marketing and leasing, communication and service, and accounting and reporting. 

AppFolio is likely a better match for landlords of midsize to large properties with at least 200 units, due to onboarding and minimum monthly fees, and a required portfolio size of at least 50 units. The initial onboarding fee is a minimum of $400, along with a monthly minimum fee of $650, depending on the plan selected.

Pros

• A true “enterprise-level” solution with advanced AI-driven accounting
• Deep reporting capabilities designed to handle massive, complex portfolios

Cons

• High barrier to entry with significant onboarding fees and unit minimums, making it inaccessible and overly complex for smaller scale landlords

Buildium

Buildium is a cloud-based property management platform designed for landlords and property managers who need a “year-round” system rather than just tax-season software. It centralizes every aspect of rental management, including online rent collection, tenant screening, maintenance tracking, and automated lease renewals.

For taxes, Buildium acts as bookkeeping engine that tracks every income and expense transaction, generates “accountant-ready” financial reports (like Profit and Loss statements), and offers built-in 1099 e-filing for vendors and owners. 

Subscription plans from Buildium start from $62 per month for the Essential Plan, the Growth Plan starting at $192 per month, and the Premium Plan with a starting price of $400 a month.

Pros

• Excels at understanding your year-round financial health
• Features built-in 1099 e-filing for vendors and generates “accountant-ready” P&L statements

Cons

• Can be costly for small portfolios, and some advanced reporting features are locked behind higher-priced tiers

Tax tips for rental property owners

TurboTax is rated as the best overall tax software and also provides an exclusive offer to members of the Stessa Community. But the software provider doesn’t stop there.

TurboTax has put together a list of often-overlooked tax tips for landlords, including:

Repairs vs. improvements

A repair expense can be deducted the year the cost is incurred, but improvements must generally be added to the property basis and depreciated over time. Repairs are things that restore the property to its original condition, such as painting or fixing a broken window. Improvements, on the other hand, increase the value of a home, such as adding additional square footage to increase the monthly rent.

Legal and professional fees

The cost of hiring a real estate attorney or certified public accountant (CPA) who provides services directly related to a rental property are generally fully tax deductible. Examples of legal and professional fees rental property owners incur include paying an attorney to write a lease or hiring a CPA to assist with tax preparation.

Depreciation recapture

Real estate investors benefit from claiming depreciation expenses each year to reduce taxable net income. However, when a rental property is sold, the IRS requires investors to “recapture” depreciation and pay tax. 

Before selling an investment property, it’s important to consider the tax consequences of depreciation recapture. Investors may wish to analyze the pros and cons of conducting a 1031 tax-deferred exchange to purchase a replacement investment property and defer any capital gains and depreciation recapture tax liability.