Put your rental income and expenses on the right Schedule E lines, see each property's net income or loss, and download a clean PDF for your tax preparer.
Building cost basis only — never the land. A residential building is depreciated over 27.5 years; this shows one full year, so a property placed in service mid-year will be less in year one.
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General information only — not tax advice. Confirm what you report with a tax professional.
Fixing a leak is a repair on line 14. A new roof is an improvement you depreciate. Mixing them up is the most common Schedule E error.
Only mortgage interest is deductible. Principal, and any escrow you haven't actually spent yet, stays off the form.
Expenses shared across buildings — insurance policies, software, travel — need to be split so each property's line 21 is right.
If every payment and expense was categorized when it happened, Schedule E is a report you print — not a weekend with a shoebox.
Related: Schedule E and 1099s for landlords, rental property tax deductions, rent receipt generator and rental accounting software.
Rentwelly books every rent payment and expense to the right property and category as it happens, so your Schedule E numbers are ready in January. Free forever for up to 2 units.
Schedule E (Form 1040), Supplemental Income and Loss, is where individual landlords report rental real estate income and expenses. Part I has one column per property (A, B, C) and a fixed list of expense lines; line 21 is each property's income or loss.
The worksheet follows the form: advertising (5), auto and travel (6), cleaning and maintenance (7), commissions (8), insurance (9), legal and professional fees (10), management fees (11), mortgage interest paid to banks (12), other interest (13), repairs (14), supplies (15), taxes (16), utilities (17), depreciation (18) and other (19). Line 20 totals them.
Only the interest portion, on line 12 — usually the figure on your Form 1098. Principal is not an expense; it is paying down a loan. Escrowed property taxes and insurance go on lines 16 and 9 when they are actually paid.
For residential rental property, the building's cost basis (purchase price plus certain costs, minus the value of the land) is generally recovered over 27.5 years using the mid-month convention, so the first and last years are partial. The helper here shows a full year; your preparer or Form 4562 handles the first-year proration.
Schedule E fits three properties per page; with more you attach additional pages. This worksheet handles three at a time — download one PDF per group of three.
No. It is an organizing worksheet. Passive activity loss limits, personal-use allocation, short-term rental rules and depreciation conventions can change what you actually report, so give the PDF to your tax preparer rather than filing from it.
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