I own a vacation rental property. What records do I need to keep in case of an audit? Do I have to keep an actual copy of every utility bill, purchase receipt etc?

[lisawiborg]

Or is it enough that I have a spreadsheet of $ in and out, and a dedicated checking account?

[AmeliesUncle]

You need to keep all of the bills/invoices and records of payments.  A spreadsheet is not "proof" of anything.

[Carl]

I've been a landlord for 30 years now. I keep my original receipts for *EVERYTHING*. I don't care if it's a ten cent washer for the water faucet that leaked back in 1995. I've got the ten cent receipt for that replacement washer.

When dealing with the IRS remember the three golden rules.

1) You are guilty until proven innocent.

2) The burden of proof lies on the accused (that's you!) and not the accuser.

3) If it's not in writing, then it *did* *not* *occur*.