Expenses not specific to any property

[Andy W.]

I have two rental properties (1 single family + 1 two-unit), but this is the first year I've encountered tax season as an RPO. I have a CPA I intend to have file my taxes, but it sounds like they're not expecting me to just show up with a box of receipts. Apparently CPAs and bookkeepers are not the same thing. Lesson learned :)

I think I've done a pretty good job of keeping my books since acquiring the properties, but I made the mistake of recording expenses as a single entry each time I paid off my Lowe's card. Now I'm realizing that I'm going to have to itemize this huge stack of receipts to figure out which property each one pertains to.

I've read elsewhere that if supplies, e.g. light bulbs, paint, etc. are purchased for general use rather than for a specific property, then it's OK to split the expense between the properties. I was wondering if that was also true of equipment, e.g. painting supplies, ladders, etc?

I don't have an LLC yet, so I'll be reporting to the IRS on a 1040E(?) so if I don't allocate the expenses to one or more properties, I'm not sure where I'd put them.

Also, should I be recording the expense as net, or gross (including sales tax)?

Thanks!

TL/DR:

• Can/should I split expenses for equipment such as painting supplies, ladders, etc. between both of my properties. If not, how should I allocate?
• Should I record expenses as net or gross (including sales tax)

[Linda Weygant]

Originally posted by @Logan Allec:

@Andy W., if the amounts are small, you should be OK with one column on your Schedule E called "Rental Overhead" or something to that effect and putting these items there.

 I do this on my own return.  This is where I stick stuff like mileage, small tools, the depreciation for larger tools, etc.