Expenses paid on your rental property are reported on Lines 5 through 18 on Part I of Schedule E. The rules for most of these expenses are the same as those that apply to small businesses , or that apply to your home real estate taxes and mortgage interest (except that the $1,000,000 limit on deductible mortgage interest does not apply).

The major categories of expenses that you can deduct are listed on the front of Schedule E. In the following sections we discuss a few of the more important types of deductible expenses, and a few types of expenses that are often forgotten:

• interest expenses
• depreciation
• other rental expenses

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