Rental Property Tax Deductions: A Line by Line Guide to Schedule E
When you rent out property, your income goes on Schedule E and so do your expenses. The good news is that most of what it costs to run a rental is deductible. The catch is that you need the records to back it up, and you need to put things on the right line.
I own a rental, and with Schedule E the form itself is the easy part. Pulling the year's numbers together is the hard part.
The expense lines
| Line | What goes there |
|---|---|
| 5 Advertising | Listing fees, signs |
| 6 Auto and travel | Driving to the property for rental business. For 2026 the IRS standard rate is 72.5 cents a mile. |
| 7 Cleaning and maintenance | Cleaning between tenants, lawn care, pest control |
| 8 Commissions | Leasing or finder fees |
| 9 Insurance | Landlord or rental dwelling policy |
| 10 Legal and other professional fees | Attorney, tax preparer for the rental |
| 11 Management fees | Property manager |
| 12 Mortgage interest paid to banks | From your Form 1098 for the rental |
| 13 Other interest | Other loans used for the rental |
| 14 Repairs | Fixes that keep the property in working order |
| 15 Supplies | Smoke alarm batteries, light bulbs, small items |
| 16 Taxes | Property tax on the rental |
| 17 Utilities | Any you pay for the tenant |
| 18 Depreciation | The yearly share of the building's cost and improvements |
| 19 Other | Anything else ordinary and necessary, listed out |
Repairs versus improvements
This is where most mistakes happen. The IRS says repairs keep the property in ordinarily efficient operating condition, and you deduct them in full that year on line 14. Improvements are different. If the work is a betterment, a restoration or adapts the property to a new use, you don't deduct it all at once. You add it to your basis and depreciate it over time.
- Patching a roof leak: repair
- Replacing the entire roof: improvement
- Fixing a broken window: repair
- Replacing all the windows: improvement
More on how that works in rental depreciation explained.
Don't forget
- Mileage. Trips to show the unit, meet a repair person or pick up supplies add up. Log them as you go.
- Security deposits aren't income if you plan to return them. Any part you keep becomes income that year. A deposit used as last month's rent is advance rent and is income when you receive it.
- Property tax on the rental goes here, not on your personal itemized deductions.
This is general information, not tax advice. Rental tax rules have plenty of exceptions, so talk to a tax professional about your situation.
Common questions
What expenses can I deduct on a rental property?
Ordinary and necessary rental expenses such as advertising, travel, cleaning and maintenance, insurance, professional fees, management fees, mortgage interest, repairs, supplies, property taxes, utilities and depreciation, reported on Schedule E.
Is a new roof on a rental a repair or an improvement?
Replacing an entire roof is generally an improvement, so it is depreciated rather than deducted in one year. Patching a leak is a repair.
What is the 2026 mileage rate for rental property travel?
The IRS standard mileage rate for business use in 2026 is 72.5 cents per mile.
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Rent, expenses, mileage and depreciation for up to 5 rentals, totaled by Schedule E line. Excel and Google Sheets.
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Sources checked October 2026:
General information for Georgia property owners, not legal, tax or insurance advice. Rules change, so check the official source or a professional before you act.