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Rental property expense categories checklist
Use these categories in your spreadsheet or bookkeeping and every expense lands on the right Schedule E line. Each one includes examples, plus the items that should be tracked but not deducted.
Updated October 2026. General information for US landlords, not tax or legal advice.
Download it as a 1-page PDF checklist (free, no email required).
Deductible categories
| Category | Examples | Sch. E line |
|---|---|---|
| Advertising | Listing sites, signs, ads, tenant-screening service fees | 5 |
| Auto & travel | Standard mileage (or actual costs) for rental trips, parking, tolls; 50% of meals when traveling away from home | 6 |
| Cleaning & maintenance | Turnover cleaning, lawn care, snow removal, pest control | 7 |
| Commissions | Leasing agent or rental commissions | 8 |
| Insurance | Landlord/dwelling policy, liability, flood | 9 |
| Legal & professional fees | Tax prep for the rental, attorney, eviction filings (not fees to buy or defend title: those are capitalized) | 10 |
| Management fees | Property manager's percentage and leasing fees | 11 |
| Mortgage interest (banks) | Interest from Form 1098; principal is never deductible | 12 |
| Other interest | Seller-financed or private loans, credit card interest for rental costs | 13 |
| Repairs | Fixing what's broken: leak, lock, broken window pane, patching drywall, repainting a room | 14 |
| Supplies | Smoke detectors, filters, bulbs, small tools and hardware | 15 |
| Taxes | Property taxes on the rental; payroll taxes if you have employees | 16 |
| Utilities | Water, sewer, trash, gas, electric you pay; rental-related phone calls | 17 |
| Depreciation | Building over 27.5 years; improvements and appliances on their own schedules (Form 4562) | 18 |
| Other | HOA dues, bank fees, software, licenses and permits, amortized loan points | 19 |
Track these, but don't deduct them
| Category | Why |
|---|---|
| Mortgage principal | Paying down the loan isn't an expense. Only interest is deductible. |
| Capital improvements | A new roof, HVAC system, addition or full remodel is depreciated, not expensed (unless a safe harbor applies). |
| Security deposits received and returned | Not income if you plan to return them. Deposits you keep become income in the year you keep them (Pub 527). |
| Owner draws and contributions | Money moving between you and the rental account. |
| Purchase closing costs | Most are added to the property's basis and depreciated. Loan costs are amortized. |
Repair or improvement?
The IRS calls an amount an improvement if it betters the property (fixes a defect that existed before you bought it, or enlarges or upgrades it), restores it (replaces a major component, such as an entire roof), or adapts it to a new use. Everything else that keeps the property in ordinary working order is a repair.
Three safe harbors can let you expense smaller items:
- De minimis: up to $2,500 per invoice or item (annual election).
- Routine maintenance: recurring work you expect to do more than once in 10 years for buildings.
- Small taxpayer: if the building's unadjusted basis is $1 million or less, total repairs, maintenance and improvements on it of up to the lesser of 2% of basis or $10,000 a year.
Each safe harbor has conditions. Ask your preparer before relying on one.
Put the categories to work
The free template and the Rental Property Tracker both use these categories in a dropdown, so each row is mapped to its line automatically. Next: the full landlord tax deduction list.
Sources: IRS Instructions for Schedule E; Pub 527; Treas. Reg. §1.263(a)-1(f), -3(h), -3(i).
FAQ
Is a new appliance a repair or an improvement?
Replacing an appliance is usually a capital expense, depreciated over 5 years, unless it fits the de minimis safe harbor (up to $2,500 per item or invoice, with the election made).
Is HOA a deductible rental expense?
Yes, regular HOA dues on a rental are deductible, usually on line 19 (Other). Special assessments for improvements are generally capitalized.
What category is a property manager's leasing fee?
Management fees (line 11) or commissions (line 8). Be consistent from year to year.