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.)

Documentation for proving rental losses you claimed
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: a copy of the paperwork Form 1099-Misc from Section 8 showing the tenant’s portion of rent
	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: a statement from the individual indicating the amount of interest you paid, the name of the individual, and the address of the individual; and proof of payment, such as copies of checks or bank statements.
	if you are claiming repairs: a detailed explanation of the work that was done on rental property corresponding receipts and verifiable proof of payment	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: a lease agreement stating who is responsible for the utilities bills, receipts, and proof of payment of the utilities you paid on behalf of tenants, indicating the apartment number or unit documentation outlining the utilities you paid for yourself
	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: pages from your insurance policy showing the number of units that you rent bills, receipts, and proof of payment for all other rental 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.

Updated: January 31, 2023