3. Schedule E – Rental Property Expenses
“Now more than ever, if you’re a sole proprietor, Schedule C or have a Schedule E rental property, the chances of your expenses being scrubbed by the IRS are much higher,” says Miller.
This is due to the adoption of the Tax Cuts and Jobs Act which increased the standard deduction so much that for most taxpayers it no longer makes sense to itemize deductions. Those who do still itemize need to ensure they have the correct paperwork for everything.
This includes rental property owners who typically file a Schedule E to report income and losses from the property.
