Rental Property Expense Calculator
Complete Schedule E worksheet for rental property owners. Track all 15+ expense categories, calculate depreciation, apply personal use and passive activity loss rules, and see your after-tax cash flow.
| Item | Amount |
|---|---|
| Gross Rental Income (12 × $2500) | $30,000 |
| Total Income | $30,000 |
| Operating Expenses | |
| Insurance | -$1,800 |
| Mortgage Interest | -$12,000 |
| Repairs | -$2,000 |
| Property Taxes | -$4,000 |
| Total Operating Expenses | -$19,800 |
| Depreciation (27.5-yr) | -$11,636 |
| Total Deductions | -$31,436 |
| Net Rental Income | -$1,436 |
| Passive Loss Limit | $15,000 |
| Passive Loss Allowed | $1,436 |
| Taxable Rental Income | -$1,436 |
| Estimated Tax (24%) | -$345 |
| After-Tax Cash Flow | $10,200 |
Net Income
-$1,436Tax Savings
$7,545Cash Flow
$10,200Effective Rate
1.0%| Category | Entered | Allowed | Note |
|---|---|---|---|
| Advertising | $0 | $0 | |
| Auto & Travel | $0 | $0 | |
| Cleaning & Maintenance | $0 | $0 | |
| Commissions | $0 | $0 | |
| Insurance | $1,800 | $1,800 | |
| Legal & Professional Fees | $0 | $0 | |
| Management Fees | $0 | $0 | |
| Mortgage Interest | $12,000 | $12,000 | |
| Other Interest | $0 | $0 | |
| Repairs | $2,000 | $2,000 | |
| Supplies | $0 | $0 | |
| Property Taxes | $4,000 | $4,000 | |
| Utilities | $0 | $0 | |
| HOA / Condo Fees | $0 | $0 | |
| Other Expenses | $0 | $0 | |
| Total | $19,800 | $19,800 |
This calculator provides estimates based on Schedule E rules. Personal use limitations, passive activity loss rules, and depreciation recapture are complex — consult a tax professional for your specific situation. Suspended losses carry forward to future years or become deductible when you dispose of the property.
Edit inputs ↑Frequently asked questions
What expenses can I deduct on Schedule E?
Schedule E allows deductions for advertising, auto and travel, cleaning and maintenance, commissions, insurance, legal and professional fees, management fees, mortgage interest, repairs, supplies, property taxes, utilities, HOA fees, and depreciation. Capital improvements must be depreciated over their useful life rather than deducted immediately.
How does personal use affect rental property deductions?
If you use the property personally for more than 14 days or 10% of the days it was rented (whichever is greater), your rental expenses are prorated based on the ratio of rental days to total days used. If rented fewer than 15 days per year, rental income is not reportable but no expenses can be deducted.
What is the $25,000 passive activity loss allowance?
If you actively participate in managing your rental property and your AGI is $100,000 or less, you can deduct up to $25,000 in rental losses against other income. This allowance phases out by $1 for every $2 of AGI above $100,000, reaching zero at $150,000 AGI.
What does it mean to be a real estate professional for tax purposes?
To qualify as a real estate professional, you must spend more than 750 hours per year in real property trades or businesses, and more than half of your total personal services must be in real estate activities. RE professionals can deduct all rental losses without the $25,000 limit or AGI phase-out.
What happens to suspended passive losses?
Suspended passive losses carry forward to future tax years. They can offset passive income in future years, or become fully deductible when you dispose of the property in a taxable transaction. Keeping track of suspended losses is important for long-term tax planning.
Sources
Your rental property tax also depends on where you live.
State taxes can significantly change your total liability. See how it varies.