LBI Rental Taxes: Year-End Prep Checklist

When the last guest leaves and the island quiets down, it’s the perfect moment to get ahead on LBI rental taxes. November and December give you breathing room to organize records while the summer season is still fresh—and well before your tax professional starts asking for documents.

Below is a straightforward year-end checklist for Long Beach Island vacation rental homeowners. This is general information only; tax rules change, so always confirm details with current IRS and New Jersey guidance or a qualified tax professional.

Why Year-End Planning Matters for LBI Rental Taxes

Tackling LBI rental taxes now helps you:

• Avoid the February scramble for missing receipts

• Catch gaps in your recordkeeping while you still remember what happened

• Plan smartly for upgrades, pricing, and next year’s rental strategy

Think of it as closing the books on this rental season so you can move into the next one with fewer surprises.

Income Records That Matter for LBI Rental Taxes

Start by confirming what you actually earned from your LBI rental:

• 1099-Ks from rental platforms and payment processors

• 1099-MISC or similar forms from agencies or property managers

• A log of direct payments (checks, bank transfers, payment apps)

• Your booking calendar, including refunds, discounts, and cancellations

Match your calendar to your bank statements. Clean income records are a key foundation for accurately reporting LBI rental taxes.

Organize Everyday Operating Expenses

Next, gather the costs of running your Long Beach Island rental:

• Utilities: electric, gas, water/sewer, trash, internet

• Cleaning and turnover services between guests

• Exterior care: landscaping, snow removal, power washing, gutter cleaning

• Supplies: linens, kitchen items, small appliances, paper goods, light bulbs, batteries

Group receipts and statements by category. Clear categories make it easier for your CPA to see what’s truly rental-related.

Repairs, Improvements, and Depreciable Items

Many shore properties see a steady stream of maintenance. For tax purposes, your professional may treat these differently, so create a simple list:

• Repairs (fixing what’s broken): leak patches, railing repair, AC fixes

• Improvements (making it better): new roof, full bath remodel, added deck or outdoor shower

Also flag big items that may be depreciated over time, such as:

• Furniture and mattress replacements

• Major appliances (refrigerator, washer/dryer, dishwasher)

• HVAC units, water heaters, and other mechanicals

• Significant exterior upgrades (windows, siding, bulkheads, docks)

Include date, cost, and a short description. That way your CPA can decide what should be expensed now and what should be depreciated for future LBI rental taxes.

Mileage, Trips to LBI, and Personal Use

If you travel to Long Beach Island to manage your rental, keep a basic mileage log:

• Date of each trip

• Round-trip mileage

• Purpose (meet contractor, check property, turnover, etc.)

Also be sure your calendar accurately shows:

• Guest stays

• Owner-use days

• Blocked dates for maintenance or vacancy

Personal use versus rental use can affect how expenses are treated on your LBI rental taxes, so accuracy really matters.

Quick Year-End Bookkeeping Cleanup

Before January rolls in:

• Reconcile rental-related bank and credit card transactions

• Make sure each expense has a clear category

• Save digital copies of key documents in one folder to share with your CPA

Along with income taxes, New Jersey vacation rentals may be subject to state and local lodging or occupancy taxes, depending on how bookings are handled and who collects payment. Your tax advisor can help you confirm what applies to your specific Long Beach Island property.

If this year’s numbers raise questions—about whether to adjust rates, invest in upgrades, or even rethink renting versus selling—our local real estate team can help you explore options. Getting organized now makes LBI rental taxes less stressful and sets you up for a smoother, more profitable summer season on Long Beach Island.

Source References

1. IRS Topic No. 414 – Rental Income and Expenses (Internal Revenue Service, last reviewed Sept. 16, 2025). Overview of taxable rental income, deductible expenses, and basic recordkeeping expectations for rental property owners. IRS

2. IRS Topic No. 415 – Renting Residential and Vacation Property (Internal Revenue Service, last reviewed Sept. 16, 2025). Explains special rules for vacation homes and mixed personal/rental use, including allocation of expenses. IRS

3. Rental Income and Expenses – Real Estate Tax Tips (Internal Revenue Service, last reviewed Sept. 8, 2025). IRS summary of rental income reporting, deductible expenses, and links to detailed publications for small landlords. IRS

4. IRS Publication 527 – Residential Rental Property (Including Rental of Vacation Homes) (Internal Revenue Service, 2024 edition; about page updated Aug. 4, 2025). Comprehensive federal guidance on rental income, expenses, depreciation, and vacation home rules. IRS+1

5. New Jersey Vacation Rental Tax Guide (Avalara MyLodgeTax, New Jersey short-term rental tax guide, updated within the last five years). Explains New Jersey lodging and occupancy tax rules for vacation rentals, including when hosts must register, collect, and remit state and local taxes. Avalara

Last Updated on November 25, 2025