Schedule E
The IRS form landlords file with their tax return to report rental income and expenses. If you own rentals in your own name, this is the form.
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Part 1 of 4
Why a seller cares
Schedule E is where your rental's income, expenses and depreciation have been reported each year, and the buyer of a rental may ask to see it. It is the most honest record of a building's performance a seller has.
Part 2 of 4
A simple example
Your Schedule E for last year shows $27,000 of rent, $9,650 of expenses and $6,500 of depreciation. The buyer reads it beside the rent roll.
| What Schedule E shows | Why a buyer wants it |
|---|---|
| Rent actually reported | It was filed with the IRS, so it is not padded |
| Expenses actually claimed | Their underwriting starts from real numbers |
| Depreciation taken | Tells them nothing about the building; tells you about recapture |
Schedule E is the rental's tax record, and tax records are the ones nobody inflates.
Part 3 of 4
What people get wrong
That handing over Schedule E is oversharing. Buyers of rentals ask for it routinely, and refusing reads as something to hide.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines schedule e in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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