Schedule E Line by Line: A Landlord’s Guide to Rental Income

Where each rental number goes on Schedule E: rents on line 3, expenses on lines 5 to 19, depreciation on line 18, and how a loss is limited.

By Seayora Editorial Team · Published October 23, 2026 · Facts checked October 23, 2026 · 3 min read

Short answer: Schedule E (Form 1040), Part I is where you report each rental property’s income and expenses: rents on line 3, expenses by category on lines 5 through 19, depreciation on line 18, and the property’s income or loss on line 21. Up to three properties fit on one page, and a loss may be limited by the passive activity rules on Form 8582.

What goes on lines 1 and 2?

Line 1a is the property’s address and line 1b its type, such as single-family, multifamily or vacation home. Line 2 counts fair rental days and personal use days, the numbers that decide whether the vacation home rules limit your deductions, and asks whether the property is a qualified joint venture. The Schedule E instructions define each.

What counts as rent on line 3?

Report all the rent you received in the year, including advance rent and a security deposit you kept or applied to rent. A deposit you will return is not income. Fees a tenant pays you, such as late fees, and expenses a tenant paid on your behalf are rent too (IRS Publication 527).

Which expenses go on which line?

Schedule E, Part I expense lines.
Line	Expense	What usually goes there
5	Advertising	Listing fees and signs
6	Auto and travel	Driving to manage the property, at the standard mileage rate or actual cost, with a log
7	Cleaning and maintenance	Turnover cleaning and routine upkeep
8	Commissions	Commissions paid to an agent; one paid to obtain a lease is generally spread over the lease term
9	Insurance	Landlord, liability and flood policies for the year
10	Legal and other professional fees	Attorneys, eviction costs and the rental share of tax preparation
11	Management fees	A property manager’s fees
12	Mortgage interest paid to banks	From Form 1098
13	Other interest	Interest on other loans used for the rental
14	Repairs	Work that keeps the property in ordinary working order
15	Supplies	Items used up in running the rental
16	Taxes	Real estate taxes and other taxes on the rental
17	Utilities	Utilities you pay, not the tenant
18	Depreciation expense or depletion	From Form 4562
19	Other	Expenses with no line of their own, such as association dues or pest control

A repair belongs on line 14; an improvement is not an expense at all but is depreciated through line 18. Repair or improvement explains the difference, and depreciation on a rental property covers line 18.

What happens on lines 20 through 22?

Line 20 totals the expenses and line 21 is rent minus expenses for each property. If line 21 is a loss, it may be limited: line 22 is the deductible rental real estate loss after the passive activity rules on Form 8582. Most landlords who actively participate can deduct up to $25,000 of rental loss against other income, phasing out between $100,000 and $150,000 of modified adjusted gross income (IRS Publication 925).

What are the most common Schedule E mistakes?

Deducting an improvement as a repair.
Skipping depreciation. It reduces your basis whether you take it or not, so skipping it only loses the deduction.
Mixing personal and rental expenses on a home you also use yourself.
Reporting a refundable deposit as income, or a deposit you kept as not income.

How does Seayora fill this in?

The Tax Center builds the Schedule E worksheet from what already happened in your account: rent the bank confirmed, late fees included, and your Expense Center costs, by property and by Schedule E line, on a cash basis. An expense with no property, or in a category with no Schedule E line, is listed and left out of the totals so you can fix it before your preparer sees the file. Depreciation on line 18 is left to your preparer, who works it out from the purchase price and the date the property was placed in service.

Frequently asked questions

Do I need a separate Schedule E for each property?

Each property gets its own column, and one Schedule E holds three. With more than three, you attach additional pages and total them.

Is a security deposit rental income?

Not if you plan to return it. It becomes income in the year you keep it, or when you apply it to rent.

Sources

How Seayora helps

The Schedule E worksheet in the Tax Center: Rents and expenses by property and line, downloadable as a spreadsheet for your preparer.

This article is general information, not tax advice. Tax rules change and your situation is your own, so confirm the treatment with a CPA or enrolled agent before you file.

How we write and check these guides: editorial standards.

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