How It Works
When you add expenses (manually, through the Expense Wizard, or via CSV import), each entry is assigned to a Schedule E category. When you generate a P&L report, expenses are grouped by these categories so your accountant can transfer the totals directly to IRS Form 1040 Schedule E.
1
Enter expenses
Wizard, manual, or CSV import
2
Auto-categorized
Mapped to Schedule E lines
3
Generate report
Hand it to your CPA
Complete Mapping: Expense Wizard to Schedule E
The table below shows every expense category, which Schedule E line it maps to, which Expense Wizard step collects it, and common examples.
| Schedule E | Category | Wizard Step | Examples |
|---|---|---|---|
| Line 5 | Advertising | Marketing and Advertising | Professional photography, Video production, Online ads (Google, Facebook), Business cards, signs, Promoted listing boosts |
| Line 6 | Auto and Travel | Auto and Travel | Mileage to property ($0.70/mile in 2026), Flights for management trips, Tolls and parking, Hotel stays for property management |
| Line 7 | Cleaning and Maintenance | Cleaning + Property Maintenance | Turnover cleaning, Deep cleaning, carpet cleaning, Lawn mowing, tree trimming, Pest control, Pressure washing, Snow removal |
| Line 9 | Insurance | Property Insurance | Landlord/dwelling policy, HO6 condo policy, Flood/supplemental insurance, Umbrella policy |
| Line 10 | Legal and Professional Fees | Legal and Professional | CPA/accountant fees, Attorney fees (lease, eviction, LLC), Bookkeeper fees, Property appraisal |
| Line 11 | Commissions / Management Fees | Management and Commissions | Airbnb/VRBO/Booking.com commissions (via CSV import), Property management fee (8-25% of rent), Co-host fee, Leasing/tenant placement fee |
| Line 12 | Mortgage Interest | Mortgage Interest | Annual mortgage interest from Form 1098, Refinance interest |
| Line 14 | Repairs | Repairs | Plumbing repairs, Electrical repairs, HVAC service, Appliance repair, Roof patch, Door/window fix |
| Line 15 | Supplies | Supplies | Paper towels, toilet paper, Soaps, cleaning products, Light bulbs, air filters, Replacement towels/linens, Hardware, keys |
| Line 16 | Taxes (Property Tax) | Property Taxes | County property tax, City/municipal tax, Special assessments |
| Line 17 | Utilities | Utilities | Electric, Gas, Water/sewer, Internet, Cable/TV, Security/alarm |
| Line 18 | Depreciation | Auto-calculated | 27.5-year straight-line depreciation on building value (calculated automatically from your purchase price and land value percentage) |
| Line 19 | Other | HOA / Other Expenses | HOA/condo dues, Special assessments, Bank fees, Software subscriptions, Home office expense |
What Your CPA Sees
When you generate a P&L report, your accountant receives a clean summary grouped by Schedule E category. Here is an example:
Expenses by Category (Schedule E)
Line 5: Advertising$340
Line 6: Auto & Travel$480
Line 7: Cleaning & Maintenance$6,200
Line 9: Insurance$2,889
Line 10: Legal & Professional Fees$480
Line 11: Commissions / Management Fees$2,500
Line 12: Mortgage Interest$14,400
Line 14: Repairs$1,800
Line 15: Supplies$430
Line 16: Taxes (Property Tax)$6,913
Line 17: Utilities$5,057
Line 18: Depreciation$8,145
Line 19: Other (HOA, etc.)$3,600
Total Expenses$53,234
Important Notes
- •Depreciation is calculated automatically from your property's purchase price, land value percentage, and purchase date. You do not need to enter it manually.
- •Platform commissions (Airbnb service fees, VRBO/Booking.com commissions) are automatically categorized as Commissions / Management Fees (Line 11) when imported via CSV. Payment processing fees (Stripe) go to Other (Line 19).
- •Repairs vs. capital improvements: Repairs (restoring to working condition) go on Line 14. Capital improvements (new roof, new HVAC, kitchen remodel) are not deducted on Schedule E. When you enter an expense over $2,500, we prompt you to classify it. Capital improvements are tracked in a dedicated section on your reports and PDFs for your CPA to schedule depreciation.
- •Property maintenance (lawn, pest control, pressure washing) maps to Line 7: Cleaning and Maintenance. This is the most common CPA approach for these expenses.
- •HOA fees go to Line 19: Other, since there is no dedicated Schedule E line for HOA. Your CPA will label them on the form.
This page is for informational purposes only and does not constitute tax advice. Schedule E categories and rules may change. Always consult a qualified CPA.