What expenses can I deduct on Schedule E?

Mortgage interest, property taxes, insurance, advertising, management fees, repairs, utilities paid by landlord, HOA fees, professional fees, and depreciation (27.5 years straight-line for residential).

How does residential rental depreciation work?

Allocate purchase price between land (non-depreciable) and building (depreciable). Depreciate building cost over 27.5 years using straight-line method. Annual deduction = building cost divided by 27.5.

Can I deduct repairs vs improvements?

Repairs (maintaining current condition) are immediately deductible. Improvements (adding value or extending useful life) must be capitalized and depreciated. Distinction is fact-specific.

What is the vacation home rule?

If personal use exceeds 14 days or 10% of rental days, property is a vacation home. Expenses limited to rental income (no passive losses); use mixed-use allocation.

How is rental income from short-term platforms taxed?

Short-term rental (avg stay 7 days or less) may be treated as active business rather than rental, affecting passive activity rules and potentially allowing SE tax treatment. Services provided affect classification.

US Rental Property Tax Calculator (Schedule E)

Calculate rental income tax on Schedule E. Deductible expenses: mortgage interest, property taxes, insurance, depreciation (27.5 years), repairs, management fees. Passive activity loss rules apply.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate rental income tax on Schedule E. Deductible expenses: mortgage interest, property taxes, insurance, depreciation (27.5 years), repairs, management fees. Passive activity loss rules apply. Use the rental property tax result to inform your calculation.

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US Rental Property Tax Calculator (Schedule E)

How to Use

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Frequently Asked Questions

What expenses can I deduct on Schedule E?

How does residential rental depreciation work?

Can I deduct repairs vs improvements?

What is the vacation home rule?

How is rental income from short-term platforms taxed?