2023 Tax Form and Filing Deadline Overview
Most people in the US think of April 15 as tax day, and other than for a few weeks leading up to that day, people don’t spend much time thinking about taxes the rest of the year. (The actual deadline for filing in 2023 is April 18). But did you know 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. Today, we’ll look at the most common forms you may need to file for your rental property.
This article focuses on forms for rental property owners who do not have employees.
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 a Form 1040.
This year, Form 1040 is due on April 18.
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 the Form 1040.
Schedule C
If you are a sole proprietorship, you’ll attach a Schedule C to your Form 1040 each year. This reports the income or loss and all expenses related to your business.
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 the Schedule E, please see 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 a 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, so your 2023 payments are due on:
April 18
June 15
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
A 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
If you paid an independent contractor or freelancer to work on your rental property or business, 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 contractors.
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.
Like 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, so 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.
In fact, you are required to file Form 4562 if any of the following situations apply to you:
if you claim a Section 179 deduction
if you claim depreciation for property placed in service during the current year
if you claim depreciation on any vehicle or other property
if you claim a deduction for a vehicle listed on a form other than Schedule C
if you claim 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 an estimate of your total tax liability for the prior year, your payments made to date, the balance due, and a payment.
Please note that Form 4868 is due by April 18, 2023.
Form 7004
If you need an extension for filing 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.
Takeaway
Taxes can be confusing, so it’s important to work with a tax preparer. They’ll help you make sure your business is structured in the most beneficial way for you, plus they’ll ensure that you’re making the most of your business’s deductions and credits. But 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. And if you need help with the bookkeeping side of your rental property business, using REI Hub allows you to pull a Schedule E report for each property, in addition to tracking fixed assets and providing comprehensive financial reports, making tax time much easier. Start your free trial today!
