RentalTabs › Schedule E categories

Schedule E categories for rental property, line by line

If you own a rental, you report its income and costs on Schedule E (Form 1040), Part I. Here is what goes on each line, with simple examples for small landlords.

Checked against the IRS instructions for tax year 2025 on October 18, 2026. This guide is not tax advice. Please check your return with a tax professional.

The lines at a glance

Line	Category	Common examples
3	Rents received	Monthly rent, late fees, advance rent, any part of a deposit you keep
4	Royalties received	Oil, gas or mineral royalties. Rare for landlords
5	Advertising	Listing fees, yard signs
6	Auto and travel	Mileage to your rental, parking, tolls
7	Cleaning and maintenance	Turnover cleaning, lawn care, pest control
8	Commissions	Leasing agent fees
9	Insurance	Landlord or rental dwelling policy
10	Legal and other professional fees	Tax preparation, attorney fees
11	Management fees	Your property manager's fee
12	Mortgage interest paid to banks, etc.	Interest shown on your Form 1098
13	Other interest	Interest on a loan from a person, or with no Form 1098
14	Repairs	Plumber visit, broken window, painting a room
15	Supplies	Light bulbs, smoke detectors, cleaning supplies
16	Taxes	Property tax on the rental
17	Utilities	Water, trash, gas or electric you pay for tenants
18	Depreciation expense or depletion	The yearly share of the building's cost
19	Other	HOA dues, bank fees, software. List each one
20	Total expenses	Lines 5 through 19 added up
21	Income or (loss)	Line 3 and/or 4, minus line 20. A loss may need Form 6198
22	Deductible rental real estate loss	Only if you have a loss. You may need Form 8582

Before the money lines: property type and days

Line 1b asks for the type of property. For example, 1 is a single family home, 2 is a multi-family building, and 3 is a vacation or short-term rental.

Line 2 asks how many days you rented the place at a fair price, and how many days it was used personally. In general, a personal-use day is a day you, a part-owner or a family member used it, or a day it was rented below a fair price. A family member who pays fair rent and lives there as their main home does not count. The IRS instructions list the full rules.

The tricky ones

Repairs (line 14) vs improvements

A repair keeps the property in good working order, so you can deduct it this year. Fixing a broken lock and painting a room are repairs.

An improvement makes the property better, restores it, or changes how it is used. Adding a lot of insulation or replacing the whole HVAC system are improvements. You don't deduct them all at once. You depreciate them over time on line 18.

Mortgage payments (line 12)

A mortgage payment has an interest part and a principal part. Only the interest is deductible. Interest paid to a bank goes on line 12. Your lender sends Form 1098 if you paid $600 or more. If you didn't get a Form 1098, or the lender is not a bank, use line 13.

In a spreadsheet, enter one payment as two rows: one for interest and one for principal. Then only the interest row counts.

Security deposits and advance rent (line 3)

A security deposit you plan to return is not income.
If you keep part of it, for example for damage, that part is income in the year you keep it.
A deposit that will be used as the last month's rent is advance rent.
Advance rent is income in the year you receive it, no matter which months it covers.

Auto and travel (line 6)

You can deduct ordinary and necessary trips for your rental, like driving to fix something. For 2025, the standard mileage rate is 70 cents per mile. Parking and tolls also go on line 6. If you claim car costs, you also fill in Part V of Form 4562.

Depreciation (line 18)

You don't deduct the price of the building in one year. For a residential rental, you spread it over 27.5 years. Land is never depreciated. Your tax software or tax professional usually works out this number. In a spreadsheet, just enter the amount they give you.

More than three properties

Each Schedule E has three columns: A, B and C. If you have more properties, you attach more Schedules E. You fill in the combined totals on only one of them.

Track all of this in one Google Sheet

Our free template has a category for every Schedule E line. Pick a property and a category for each payment, and the sheet adds up lines 3 to 21 for you.

Get the free spreadsheet

Questions

Is a repair or an improvement deductible on Schedule E?

A repair, like fixing a broken lock or painting a room, goes on line 14. An improvement, like replacing the whole HVAC system, must be capitalized and depreciated over time instead.

Can I deduct my mortgage payment on Schedule E?

Only the interest part. Mortgage interest paid to a bank goes on line 12. The principal part is not deductible.

Is a security deposit rental income?

Not if you plan to return it. If you keep part of it, that part is income in the year you keep it. A deposit that will be used as the last month's rent is advance rent, which is income when you receive it.

How many properties fit on one Schedule E?

Three. Schedule E has columns A, B and C. If you have more properties, you attach more Schedules E.