By the iQTAXX tax team, 6360 S Rainbow Blvd, Suite 101, Las Vegas
Updated October 28, 2026. Depreciation and passive loss rules checked against IRS Publications 527 and 925 and IRS Notice 2026-11.
Quick answer: iQTAXX prepares tax returns for Las Vegas real estate investors who own long-term rentals, short-term rentals (Airbnb and VRBO), flips, and properties held in LLCs. Your rentals go on Schedule E of your Form 1040, or on a partnership or S-corp return if an entity owns them. The big items are depreciation (27.5 years for a long-term residential rental), the passive loss rules (a $25,000 allowance that phases out between $100,000 and $150,000 of income), and what happens when you sell. Nevada has no state income tax, so for most Las Vegas investors the federal return is the whole job. Our office is at 6360 S Rainbow Blvd, Suite 101, Las Vegas, NV 89118, and we are open year-round. Call 702.871.7884.
Book a rental property tax review: call 702.871.7884 or contact us.
Key facts (updated October 26, 2026)
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A rental can make money every month and still show a tax loss. That is normal, and it is legal. It comes from depreciation. The hard part is knowing whether you can use that loss this year, carry it forward, or lose part of it when you sell. This page walks through how that works for a Las Vegas investor, with real numbers.
We give you a written quote before we start. Fees depend on how many properties you have, how clean your records are, and whether a property was bought or sold this year.
Here is a typical long-term rental in the southwest valley. The numbers are an example, not a client.
The cash tells a different story. Before principal payments, this rental put $3,784 in your pocket. On paper it lost $7,271. That gap is depreciation.
Can you use the $7,271 loss? It depends on your income, because rental losses are "passive" by default:
The $25,000 allowance only applies if you "actively participate," which mostly means you approve tenants, set the rent, and approve repairs. It drops by $1 for every $2 of income over $100,000 and is gone at $150,000 (IRS Publication 925).
Missed depreciation? If a past return skipped depreciation, you don't lose it. You can usually catch it all up in one year with Form 3115, without amending old returns. When you sell, the IRS treats depreciation as taken whether you claimed it or not, so missing it costs you twice.
If you or your spouse qualify as a real estate professional, rental losses from properties where you materially participate are not passive, so they can offset wages or business income with no $100,000 to $150,000 limit. To qualify, more than half of your working hours for the year must be in real estate businesses, and those hours must total more than 750. A full-time W-2 job almost always rules this out for that person. A spouse who works in real estate full time often can qualify, and on a joint return that can unlock the losses. You need a written log of dates, hours, and tasks.
A short-term rental is taxed differently when the average guest stay is 7 days or less. In that case it is not a "rental activity" under the passive rules. If you also materially participate (for example, you spend more than 100 hours on it and more than anyone else, including your cleaner), the loss can offset your W-2 or business income. This is often called the "short-term rental loophole." It needs a time log you keep during the year, not one you rebuild later.
Clark County and the cities of Las Vegas and Henderson each have their own short-term rental license and room tax rules. Check with your city or the county before you list a property. Room taxes are separate from your federal income tax.
Selling a rental has three tax pieces:
A 1031 exchange can defer the gain if you buy another investment property. You have 45 days after the sale to identify the new property and 180 days to close. You need a qualified intermediary before the sale closes.
See our full list of items to bring.
Your rental return is prepared by our tax team at our Las Vegas office. Charles "Chuck" Blackard holds the IRS Annual Filing Season Program Record of Completion, which means he completes yearly continuing education approved by the IRS. Krystal Spivey is our full-time tax professional. Krystal and Chuck both complete the IRS Annual Filing Season Program (AFSP) every year.
We are tax preparers, not CPAs or enrolled agents. If you need someone to represent you in an IRS collection case or an appeal, we will tell you and help you find a CPA, enrolled agent, or tax attorney.
iQTAXX shares an office building with our affiliated company, iQRATE Mortgages, which arranges loans for investors, including DSCR loans that qualify on rent instead of tax returns. You are never required to use an affiliated company. Read our affiliated business arrangement notice.
Do I need a CPA to file taxes on my Las Vegas rental property?No. Any paid preparer with a valid PTIN can prepare a return with Schedule E. What matters is that the preparer knows depreciation, the passive loss rules, and short-term rental rules. A CPA or enrolled agent is needed if you want someone to represent you in IRS collection matters or appeals.
How much rental property loss can I deduct?If you actively participate and your modified adjusted gross income is $100,000 or less, you can usually deduct up to $25,000 of rental losses against other income. The allowance drops by $1 for every $2 over $100,000 and is gone at $150,000. Losses you can't use carry forward.
How long do I depreciate a rental house in Nevada?A long-term residential rental is depreciated over 27.5 years on the building value only, not the land. Furniture and appliances use 5 years, and land improvements like a pool or fence use 15 years. Nevada has no state income tax, so only the federal schedule applies.
Is a Las Vegas Airbnb taxed differently from a long-term rental?Often, yes. If the average guest stay is 7 days or less, the passive loss rules treat it like a business, and if you materially participate, losses can offset your other income. Many preparers also depreciate it over 39 years instead of 27.5.
What if my last preparer never took depreciation on my rental?You can usually claim all the missed depreciation in one year by filing Form 3115 with your current return, without amending old returns. It matters because the IRS counts depreciation you could have taken when you sell, even if you never claimed it.
Does Nevada tax my rental income?No. Nevada has no personal income tax, so rental income from a Nevada property is taxed only on your federal return. If you live in another state, such as California, that state may still tax it.
Do I need an LLC for my rental?Not for taxes. A single-member LLC is ignored for federal income tax, and the rental still goes on Schedule E. An LLC with two or more owners files a partnership return. An LLC is mainly a legal and liability choice, so talk to an attorney about protection.
What happens to my taxes when I sell a rental?You pay tax on depreciation recapture at up to 25%, capital gains tax on the rest of the profit, and you can usually deduct any suspended passive losses. A 1031 exchange can defer the gain if you buy another investment property within the deadlines.
Do you prepare taxes for Airbnb hosts in Las Vegas?Yes. iQTAXX prepares returns for Las Vegas Airbnb and VRBO hosts, including depreciation on the building and furniture and the 7-day average-stay test for short-term rentals. If you want to use the short-term rental rules, keep a time log during the year, and check your city or Clark County license and room tax rules before you list.
Who can help with a 1031 exchange tax return in Las Vegas?iQTAXX reports 1031 exchanges on Form 8824 with your tax return and carries your basis and depreciation over to the new property. You need a qualified intermediary before the sale closes, then 45 days to identify the new property and 180 days to close. We are tax preparers, not a qualified intermediary.
Bring your closing statements and last year's return, and we will look at your rentals with you. We are open year-round, not just in tax season.
iQTAXX · 6360 S Rainbow Blvd, Suite 101, Las Vegas, NV 89118 · 702.871.7884 · Contact us
Tax-season hours: Monday to Friday 9 AM to 7 PM, Saturday 9 AM to 5 PM, closed Sunday. Off-season hours: Monday to Friday 9 AM to 5 PM. Closed federal holidays except Columbus Day, and closed Nevada Day. Walk-ins and same-day clients are welcome; call ahead at 702-871-7884 to check availability. We speak English, Armenian, and Russian.
Related: Cost segregation in Las Vegas · IRS notice help · Tax planning · Business tax · how our Las Vegas tax preparation fees are determined · Short-term rental (Airbnb) taxes in Las Vegas
This page is general information, not tax advice for your situation. Tax results depend on your facts. Sources: IRS Publications 527, 925, and 946; IRS Notice 2026-11; Internal Revenue Code sections 469 and 1031. Checked October 17, 2026.
