Schedule E
Schedule E is the IRS form (attached to Form 1040) where owners report supplemental income and loss from rental real estate and royalties. Each property gets a column, with rental income at the top and deductible expenses below.
What goes on it
- Rents received for the year.
- Operating expenses: management fees, repairs, insurance, taxes, utilities, and more, on their own lines.
- Depreciation on line 18, the annual write-down of the building cost.
- The net result, income or loss, that flows to the owner return.
Where the numbers come from
Every figure on Schedule E traces back to real transactions: rent collected, fees taken, and expenses paid. When those transactions live in one system, the schedule assembles itself. AXYS categorizes each payment and expense to the right Schedule E line from the live ledger and lists the capital improvements the business marks for the owner’s tax preparer, who figures depreciation for line 18, so the owner package is ready without a year-end rebuild.
Does each property get its own Schedule E column?
Yes. Schedule E has separate columns per property so income, expenses, and depreciation are tracked individually before rolling up.
What is on Schedule E line 18?
Depreciation expense: the portion of the building cost recovered for the year, most commonly straight-line over 27.5 years for residential rental property.
Run the numbers in one system
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