Rental Property (Schedule E)
Overview
Section titled “Overview”The Rental Property skill tracks rental income and expenses per property, generates IRS Schedule E summaries, and calculates depreciation. Built for landlords and real estate investors.
IRS Schedule E Category Mapping
Section titled “IRS Schedule E Category Mapping”| Line | Category | Examples |
|---|---|---|
| 5 | Advertising | Listing fees, vacancy ads |
| 6 | Auto and travel | Mileage to/from property |
| 7 | Cleaning and maintenance | Cleaning service, lawn care, snow removal |
| 8 | Commissions | Property manager fees, leasing commissions |
| 9 | Insurance | Landlord insurance, umbrella policy |
| 10 | Legal and professional | Attorney, accountant, eviction costs |
| 11 | Management fees | Property management company |
| 12 | Mortgage interest | Mortgage interest payments |
| 13 | Other interest | HELOC interest, credit line interest |
| 14 | Repairs | Plumbing, electrical, appliance repair |
| 15 | Supplies | Light bulbs, filters, cleaning supplies |
| 16 | Taxes | Property taxes |
| 17 | Utilities | Water, sewer, garbage, electricity (if landlord-paid) |
| 18 | Depreciation | 27.5-year straight-line (residential) |
| 19 | Other | HOA fees, pest control, security |
Depreciation Calculation
Section titled “Depreciation Calculation”- Residential property: 27.5-year straight-line depreciation
- Depreciable basis: Purchase price - land value + improvements
- Annual depreciation: Basis / 27.5
- Partial year: Pro-rate by months in service (mid-month convention)
Workflow
Section titled “Workflow”- Identify rental transactions — Finds mortgage payments, rental income, repairs, insurance, property tax payments
- Group by property — Groups transactions by property based on merchant names and patterns
- Categorize by Schedule E — Classifies rental transactions into the line items above
- Calculate per property — Totals rental income, expenses by category, depreciation, and net income/loss
- Generate Schedule E summary — Per-property breakdown with totals and depreciation schedule
- Export — Exports rental transactions for tax filing
Important Notes
Section titled “Important Notes”- Passive activity loss rules may limit deductible losses (note if losses exceed $25K).
- Track personal use days vs rental days if the property is sometimes for personal use.
- This is a tax organization tool — consult a tax professional for complex situations.