Individual owners usually report rental income and expenses on Schedule E, property by property. Your tax preparer decides how each item is treated.
Common expense categories
- Advertising.
- Cleaning and maintenance, and repairs.
- Insurance.
- Legal and professional fees.
- Management fees.
- Mortgage interest.
- Supplies.
- Property taxes.
- Utilities the owner pays.
- Travel to the property.
Repairs or improvements
A repair keeps the property in working order; an improvement adds value or extends its life and is usually depreciated. Note what each job was, and let your preparer decide.
Our rental expense log sorts each expense by property and category.
General information, not legal, tax or financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
