Often the answer is Line 19, "Other (list)." Misplace the expense, though, and you can end up with a duplicate deduction, an unsupported one, or one you never claimed at all. Historical compliance data shows how common rental reporting problems are: a TIGTA report cited a GAO estimate that at least 53% of taxpayers with rental activity misreported it for tax year 2001.
This guide covers what may qualify for Line 19, what belongs elsewhere, how to itemize the amount, and which records to keep. It is based on the 2025 form and instructions, so check the current-year version before you file.
Key Takeaways
- Line 19 covers ordinary and necessary expenses not listed on Lines 5–18.
- It is a residual line, not a catch-all for hard-to-classify costs.
- List each expense by type and amount, and keep source documents.
- Keep repairs, improvements, depreciation, and personal costs off this line.
- Check the current-year IRS instructions before filing.
What Is Schedule E Line 19 and When Should You Use It?
Line 19 sits in Part I of Schedule E, which reports rental real estate and royalty income. Do not use it for partnership or S corporation expenses (Part II) or for estates and trusts (Part III).
The 2025 IRS Schedule E instructions say to enter on Line 19 "any ordinary and necessary expenses not listed on lines 5 through 18." Line 20 then totals Lines 5 through 19.
A Practical Decision Test
Before using Line 19, confirm each of these:
- The expense connects to the rental or royalty activity.
- It is ordinary, necessary, and otherwise deductible.
- It is not personal and not a capital improvement.
- No earlier line (5–18) already covers it, and you haven't reported it elsewhere.
List Each Expense Separately
The form labels the line "Other (list)," so identify each expense by nature rather than entering one unexplained total. The 2025 instructions don't prescribe a specific statement format for Line 19, so attach a clear schedule of items and amounts. That record is easier to support if the IRS asks questions.
The IRS names a few examples: auto rental or lease payments, and certain energy-efficient commercial building costs under section 179D (with Form 7205).
What Expenses May Qualify for Line 19?
Publication 527 says ordinary and necessary expenses for managing, conserving, or maintaining rental property are deductible once the property is available for rent. Qualifying still depends on the facts. None of the categories below is automatically deductible.
HOA and Condominium Charges
Dues or assessments for maintaining common elements are deductible rental expenses. Special assessments for improvements are not currently deductible. Your share of the improvement may be recovered through depreciation instead.
Tenant-Paid Property Bills
If a tenant pays one of your expenses, such as a water or sewer bill, the payment counts as rental income. You may deduct the expense too, if it is otherwise deductible.
Fees, Permits, and Dues
Bank fees, licences, permits, and professional dues are common candidates, but the 2025 instructions don't name them as automatic Line 19 items. They must still pass the ordinary-and-necessary test.
Fees on a personal checking account are not deductible. A dedicated rental account is a clearer fact pattern, so keep rental banking separate.
Education
Education that maintains or improves skills for an existing trade or business can qualify under Treasury Regulation 1.162-5. Education needed to meet minimum requirements, or to enter a new trade or business, cannot. A general investor seminar may not qualify without a clear tie to an existing rental business.
Royalty Expenses
For royalty property, enter property type code 6 on Line 1b and use a separate column for each property. Report that property's expenses in its column. Tax advice and return preparation fees go on Line 10, and producer-withheld taxes go on Line 16.
What Does Not Belong on Line 19?
Items With Their Own Lines
Many rental costs already have dedicated Schedule E lines. That includes advertising, auto and travel, cleaning and maintenance, commissions, insurance, legal and professional fees, and management fees.
Mortgage and other interest, repairs, supplies, taxes, utilities, and depreciation or depletion also have their own lines. Moving any of these to Line 19 obscures the deduction and risks duplication.
Repairs Versus Improvements
A repair can be deducted currently if capitalization isn't required. An improvement must be capitalized and recovered through depreciation. Publication 527 describes improvements as:
- Betterments, such as fixing a pre-existing material defect or increasing capacity
- Restorations, such as replacing a substantial structural part
- Adaptations to a use inconsistent with the property's ordinary intended use
Two IRS safe harbors may help. The IRS tangible property rules allow a de minimis election of up to $2,500 per invoice or item (or $5,000 with an applicable financial statement). Make the election by attaching a statement to a timely filed return. A separate small-taxpayer building safe harbor has gross receipts, basis, and spending limits.
Personal and Nondeductible Costs
Leave out:
- Personal, living, or family expenses (IRC 262)
- The value of your own labor
- Government fines and penalties for violations of law, generally
- Owner draws and checks written to yourself
- Unsupported estimates
- The personal portion of mixed-use costs
For a dwelling you also use personally, expenses must be split between rental and personal use. The home-use limits apply when personal use exceeds the greater of 14 days or 10% of days rented at fair rental value.
How to Report Line 19 Correctly and Keep Records
Gather Source Documents
Before preparing the return, collect your general ledger, bank and credit-card statements, invoices, receipts, contracts, and property-management reports. The IRS says to keep receipts, canceled checks, or bills to support expenses. Proof of payment alone doesn't prove the expense is deductible, so the invoice or contract matters too.
Classify and Allocate
Sort expenses by property or royalty activity. For shared costs, use a reasonable method you apply consistently, such as square footage or days of use, and deduct only the income-producing share.
Build a Supporting Schedule
Create a simple statement listing each Line 19 category and amount, then reconcile the total to the figure on the form.
| Expense | Property | Amount |
|---|---|---|
| Auto lease payments | Property A | $2,400 |
| Permit fee | Property B | $150 |
| Association dues | Property A | $1,200 |
For each item, record:
- Date
- Amount
- Payee
- Business purpose
- Related property
- Payment method
Retention
The IRS retention guidance says to keep supporting records generally 3 years, and 6 years if more than 25% of gross income is omitted. Keep property basis and improvement records until the limitation period for the year you dispose of the property ends.
Final Review Checklist
- No expense is duplicated on another line
- No capital item is deducted currently
- Personal-use amounts are removed
- Each amount agrees with your books
VJM Global's accounting and tax professionals, including its US individual return preparation team, can help eligible taxpayers organize rental records, classify expenses, and prepare accurate filings. Outcomes depend on your facts.
Common Mistakes When Using Schedule E Line 19
- Using it as a catch-all. Costs that belong on Lines 5–18, or that must be capitalized, don't go here.
- Vague labels and round numbers. "Miscellaneous" isn't a rule-based problem on its own, but it makes substantiation harder. Itemize and attach documents.
- Allocation errors. Mixing properties, including personal costs, or reporting partnership or S corporation expenses as rental expenses all cause trouble.
- Skipping reconciliation. Line 19 should tie to your books.
Courts do reject poorly supported claims. In Fredenberg v. Commissioner (2025), the Tax Court denied deductions backed by unreliable mileage logs and unestablished depreciation basis. It was a nonprecedential summary opinion and not a Line 19 ruling, but the lesson on records applies.
Frequently Asked Questions
What goes on Sch E?
Schedule E reports supplemental income and loss, including rental real estate and royalties in Part I. Partnerships and S corporations go in Part II, and estates and trusts in Part III.
What is line 18 on Schedule E?
Line 18 is "Depreciation expense or depletion." Line 19 is "Other (list)" for ordinary and necessary expenses not on Lines 5–18. Verify against the current-year instructions.
What expenses can be included on Schedule E line 19?
Allowable rental or royalty expenses not covered by another line, such as auto leases. Each must meet IRS rules and be separately identified and documented.
Can I put repairs on Schedule E line 19?
No. Repairs have their own line (Line 14). Improvements and replacements generally must be capitalized and depreciated.
Are HOA fees deductible on Schedule E line 19?
Ordinary dues for common-element maintenance generally are. Special assessments for improvements are not currently deductible, though they may be depreciated. Review the facts.
How should I document expenses listed on Schedule E line 19?
Keep itemized records showing type, amount, date, payee, property, business purpose, and payment proof. Reconcile the total to your books.
