Rental Property Expenses List (Schedule E Categories)

Updated November 9, 2026 · By TeamTimeToolsDesigns

If you own a rental property in the U.S., you report rental income and expenses on Schedule E. Sorting expenses into Schedule E's categories as you go, instead of at tax time, saves hours and helps you see what each property really earns. This list is general information based on IRS Publication 527; check the current instructions or a tax professional for your situation.

Schedule E expense categories

Schedule E (Form 1040), Part I expense lines
Line	Category	Examples
5	Advertising	Listing fees, signs, online ads
6	Auto and travel	Trips to the property for rental business
7	Cleaning and maintenance	Turnover cleaning, lawn care, pest control
8	Commissions	Leasing commissions
9	Insurance	Landlord and liability policies
10	Legal and other professional fees	Attorney, tax preparation for the rental
11	Management fees	Property manager
12	Mortgage interest paid to banks	Interest portion from Form 1098
13	Other interest	Interest on other rental-related loans
14	Repairs	Fixing a leak, replacing a broken window pane
15	Supplies	Light bulbs, smoke alarm batteries, small items
16	Taxes	Property taxes
17	Utilities	Utilities you pay as landlord
18	Depreciation expense or depletion	From Form 4562
19	Other	HOA fees, bank fees, software (list them)

Line numbers are from recent versions of Schedule E; confirm them on the form for your tax year.

Mortgage payments: only part is an expense

A mortgage payment usually includes principal, interest, and sometimes escrow for taxes and insurance. Only the interest goes on line 12. Principal is not deductible. Escrowed property taxes and insurance go on their own lines when paid. Split every payment into its parts as you record it.

Repairs vs improvements

This is the most common source of confusion:

Repairs keep the property in good working condition, such as fixing a gutter or patching drywall. They're generally deducted in the year paid.
Improvements add value, extend the property's life or adapt it to a new use, such as a new roof, a room addition or a kitchen remodel. They're generally capitalized and depreciated over time.

Keep invoices that describe the work clearly; the description matters when deciding which it is.

Depreciation basics

Residential rental buildings are generally depreciated over 27.5 years. Land is not depreciable, so you split your cost basis between land and building. Depreciation starts when the property is placed in service (ready and available to rent). Form 4562 and Publication 946 cover the details.

Personal use and vacant time

If you or family use the property personally, or rent it for only part of the year, you may need to divide expenses between rental and personal use. Keep a count of rental days and personal-use days for each property.

Records every landlord should keep

Lease for each tenant, rent amounts and due dates
A rent roll: rent charged, paid and outstanding, with late fees
Security deposits received, held and returned, with any deductions (your state sets rules and deadlines)
Receipts and invoices for every expense, tagged to a property and a Schedule E line
Mortgage statements and Form 1098
Closing documents and improvement invoices (for basis and depreciation)
Mileage log for trips to the property

A monthly habit

Record rent received and flag anything late.
Enter each bill with its property and Schedule E category.
Split mortgage payments into interest and principal.
Check each property's income minus expenses for the month.

Fifteen minutes a month turns tax season into printing a summary.

Want this as a ready-made template?

Everything above works with pen and paper. If you would rather have the math done for you, these are our related templates. They are paid digital downloads on Etsy; check each listing for current price, file format and details.

Rental Property & Landlord Spreadsheet

Rent roll, late fees, security deposits, and expenses sorted to Schedule E lines for small landlords with 1 to 20 properties. Excel and Google Sheets.

View on Etsy : Rental Property & Landlord Spreadsheet

Receipt Template & Receipt Log

Auto-numbered printable receipts, sales tax worked out, and a sales log that totals by month. Excel and Google Sheets.

View on Etsy : Receipt Template & Receipt Log

Sources

This guide is general information, not professional advice. Rules and recommendations change; confirm with the official sources above.