Schedule E Calculator
Calculate net rental income and deductible expenses for IRS Schedule E
What is IRS Schedule E and what expenses can I deduct?
Schedule E is the IRS form for reporting rental real estate income and expenses. Landlords can deduct mortgage interest, property taxes, insurance, repairs, utilities, property management fees, depreciation, and local travel for rental business (trips from home count only if your home is your principal place of business). Net rental income (or loss) flows to your Form 1040.
- Schedule E Part I is for rental real estate income/expenses
- Common deductions: mortgage interest, taxes, insurance, repairs, depreciation
- Rental income is NOT subject to self-employment tax (unlike active business)
- 2025 mileage rate for rental property visits: 70 cents per mile
Source:IRS Schedule E Instructions
Schedule E looks simple — rent in, expenses out, net to your 1040. The traps are categorization (which line do HOA fees go on?), depreciation (you must claim it; the IRS recaptures it whether you did or didn't), and the passive loss rules that gate whether your loss is actually usable.
Real-world scenario
$2,400/mo rental, $18K mortgage interest, $4K depreciation
Gross rents: $28,800. Mortgage interest: $18,000. Property tax: $4,200. Repairs: $1,800. Insurance: $1,400. Property mgmt: $2,300. Depreciation (27.5-yr SL on $220K building): $8,000. Total expenses: $35,700. Schedule E shows a $6,900 loss — but whether you can use it depends on MAGI and REPS status.
The part most people miss
Depreciation is not optional. Even if you skip it on Schedule E, the IRS recaptures the depreciation you 'should have taken' when you sell (Section 1250, capped at 25%). Always claim it — the only way to lose is by not claiming it and getting taxed on it later anyway.
We built this calculator to help landlords understand their net rental income and spot deductions they may have missed.
What can I deduct on Schedule E for rental property?
Schedule E allows deductions for mortgage interest, property taxes, insurance, repairs, management fees, advertising, travel, utilities, and depreciation. Net rental income is NOT subject to self-employment tax, unlike Schedule C. Common expense ratio is 30-50% of gross rents.
- •No self-employment tax on rental income
- •Depreciation is typically the largest deduction
- •2025 mileage rate: 70¢/mile for property visits
- •Losses may be limited by passive activity rules
Rental Income
All rental income: rent received, advance rent, lease-cancellation payments, security deposits you kept, the fair market value of property or services received as rent, and any of your expenses your tenant paid (then deduct those expenses on their lines).
Expenses (Schedule E Lines 5-19)
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Fill in income and expenses to calculate Schedule E
Schedule E Tips
Don't forget depreciation — it's often the largest deduction for landlords.Calculate depreciation →
Sources & References
Primary references used for this content
Supplemental Income and Loss
Rental, royalty, partnership, and S-corp income
View on irs.gov
Residential Rental Property
The IRS's primary guide for landlords
View on irs.gov
✓2 primary sources; links re-checked on a weekly rotation by the source watcher
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.