What's in the rental property bookkeeping workbook
Most of your typing happens on the Transactions tab, one row per payment. Setup, Deposits, and Depreciation hold the few details that don't change often. Every other tab is built with formulas, so a payment you enter once shows up on Schedule E, in the monthly profit report, and in the year-end checks. The amounts you type in the builder above are already in the file as yearly totals.
| Tab | What it does |
|---|---|
| Start Here | Contents with links, and how the file works |
| Setup | Tax year, properties, and each building's basis |
| Transactions | The one place you type: date, property, category, amount |
| Deposits | Security deposits as a liability, kept amounts to rent |
| Depreciation | Buildings and improvements, 27.5 or 39 years, mid-month |
| Schedule E | Lines 3 to 21 for each property, ready for the form |
| Monthly P&L | Income, NOI, and cash flow by month |
| Year-End Checks | Form 1098 match, flags, and a filing checklist |
| Categories | Every category with its Schedule E line; add your own |
How to use the template
- 1
Type your yearly totals
Fill the yellow box next to each Schedule E line: rent received, insurance, mortgage interest, property taxes, repairs. You can type 1850*12 for twelve months of rent. Leave a box empty if it doesn't apply. Totals update as you type. Nothing else is required.
- 2
Add purchase details for depreciation
Enter the date each property was first available to rent, the purchase price, and the land share, and the builder works out this year's depreciation for line 18. A name is optional; unnamed properties are called Property 1, Property 2, and so on.
- 3
Download the workbook
Your properties and amounts go into the file. Open it in Excel, or upload it to Google Drive and open it with Google Sheets. The first tab links to every other tab.
- 4
Enter transactions as they happen
One row per payment or expense on the Transactions tab: date, property, category, amount. Split each mortgage payment into interest, principal, and escrow.
- 5
Log deposits and improvements
Security deposits go on the Deposits tab, not in income. A new roof or water heater goes on the Depreciation tab, not in Repairs.
- 6
Review at year end
Clear the checks on the Year-End Checks tab, match mortgage interest to Form 1098, then copy the Schedule E tab onto the form or send it to your preparer.
Rental property categories and their Schedule E lines
Each category in the template goes on one line of Schedule E, Part I. Income goes on line 3, expenses on lines 5 to 19, and depreciation on line 18 comes from the Depreciation tab.
| Category | Schedule E line | What goes here |
|---|---|---|
| Rent | 3 · Rents received | Monthly rent, including advance rent and last month's rent. Rent is income in the year you receive it. |
| Late fees | 3 · Rents received | Late fees and returned-payment fees you charge tenants. |
| Pet rent and non-refundable pet fees | 3 · Rents received | Refundable pet deposits are deposits, not income. |
| Parking, storage, and laundry | 3 · Rents received | Other charges tenants pay you. |
| Lease cancellation payments | 3 · Rents received | A payment to end a lease early is rent. |
| Tenant-paid expenses | 3 · Rents received | If a tenant pays one of your bills and takes it off the rent, enter it here as income and again under the expense. |
| Other rental income | 3 · Rents received | Any other income from the rental, such as the value of services a tenant gives instead of rent. |
| Advertising | 5 · Advertising | Listing fees, signs, and ads to find tenants. |
| Auto and travel | 6 · Auto and travel | Mileage and travel to collect rent or manage and repair the property. Travel to improve it is part of the improvement. |
| Cleaning and maintenance | 7 · Cleaning and maintenance | Turnover cleaning, lawn care, pest control, snow removal. |
| Commissions | 8 · Commissions | Leasing commissions. Short-term platform fees are often entered here; confirm with your tax preparer. |
| Insurance | 9 · Insurance | Landlord, liability, and flood insurance. If you prepay more than one year, deduct only this year's part. |
| Legal and professional fees | 10 · Legal and other professional fees | Attorney, bookkeeping, and tax preparation for this schedule. |
| Management fees | 11 · Management fees | Property manager fees. |
| Mortgage interest | 12 · Mortgage interest paid to banks, etc. | The interest part of each payment only. Check the total against Form 1098 at year end. |
| Other interest | 13 · Other interest | Interest on private or seller loans, or on credit cards used for the rental. |
| Repairs | 14 · Repairs | Fixes that keep the property in working order. Work that betters, restores, or adapts the property is an improvement: enter it on the Depreciation tab. |
| Supplies | 15 · Supplies | Light bulbs, filters, small hardware. |
| Taxes | 16 · Taxes | Property taxes (when paid, including from escrow) and rental licenses. Not federal income tax. |
| Utilities | 17 · Utilities | Water, trash, gas, electric, and internet you pay for the rental. |
| HOA or condo fees | 19 · Other | Regular association dues. Special assessments for improvements are usually capital costs. |
| Items under the $2,500 de minimis election | 19 · Other | Items or invoices of $2,500 or less you choose to deduct instead of depreciating. The election is made each year with your return. |
| Other expenses | 19 · Other | Bank fees, software, tenant screening, and other ordinary costs. |
| Depreciation | 18 · Depreciation expense or depletion | Calculated from each building's basis and your improvements. Land is left out. |
A few categories don't go on Schedule E at all, so you can label every line on your bank statement without changing your numbers:
- Loan principal. Not deductible. It lowers the loan balance and counts in cash flow only.
- Escrow deposits. Not deductible when you fund escrow. Enter taxes and insurance when the lender pays them, from your Form 1098 or escrow statement.
- Owner money in or out, and transfers. Money you put in or take out, and moves between your own accounts. Not income or expense.
- Personal, not rental. Personal spending from a shared account. Better: keep a separate account for the rentals.
- Security deposits. A deposit you plan to return isn't income, according to IRS Publication 527. The part you keep becomes income in the year you keep it.
Sources
- Instructions for Schedule E (Form 1040), Internal Revenue Service
- Publication 527, Residential Rental Property, Internal Revenue Service
- Publication 946, How To Depreciate Property, Internal Revenue Service
- Tangible property final regulations (de minimis safe harbor), Internal Revenue Service
- Topic no. 305, Recordkeeping, Internal Revenue Service
This template and page are general information, not tax advice. Rules for passive losses, short-term rentals, and property sales depend on your situation. Review your return with a tax professional. Figures and rules checked at the IRS in September 2026.