Some items you will use both on your business vehicles and on your rental properties, adding the potential for even more deductions. Records You Need to Keep 1. All papers relating to the purchase of the property including closing statements and contracts. Any improvements you make after you buy the property. In addition, make sure, if the tax statement doesn't already, that you break out the land value from the structure value.
Any amortization statements relating to the purchase.
A list of tools and equipment you buy to maintain your properties. Any blueprints a previous owner can give you. If You Are Audited The IRS will verify income and expense. As mentioned before, have a rent schedule and a receipt book showing who paid, when and how much. If the rent was too low, the IRS could limit your losses.