Late fees from tenants
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Can You Write Off Late Fees From Tenants?
Short answer: Yes, they're taxable: late fees and bounced-check fees you collect from tenants are rental income.
Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
BW-B23-01683
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Late fees from tenants
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Real Estate / Landlords / Property Managers / Agents
Rent & Facilities
Rental Property Write-Offs
Yes, they're taxable: late fees and bounced-check fees you collect from tenants are rental income.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes, they're taxable: late fees and bounced-check fees you collect from tenants are rental income. Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
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- Rental Property Write-Offs
rental property
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