Do all fees need to be assigned to a single property on sched E?

[Will Ellis]

I am a new real estate investor.  I am starting to look at taxes and have a question about Schedule E.  I have some expenses that I have incurred this year that do not coincide with a single house that I am still hoping to add to my overall expenses on schedule E.  These include the purchase of signs for advertising, tools for maintenance and driving to see houses that I did not end up purchasing.

Should I randomly assign these to another house just to make them fit on schedule E?  Should I call my type of rental property: 8 (other) and then describe that it is for things that do not fit to one specific property?  What do most people do in this situation?

Any advice would be extremely appreciated.

Thanks!

[Brie Schmidt]

Originally posted by @Will Ellis:

I am a new real estate investor.  I am starting to look at taxes and have a question about Schedule E.  I have some expenses that I have incurred this year that do not coincide with a single house that I am still hoping to add to my overall expenses on schedule E.  These include the purchase of signs for advertising, tools for maintenance and driving to see houses that I did not end up purchasing.

Should I randomly assign these to another house just to make them fit on schedule E?  Should I call my type of rental property: 8 (other) and then describe that it is for things that do not fit to one specific property?  What do most people do in this situation?

Any advice would be extremely appreciated.

Thanks!

 Items purchased like advertising signs and tools - I divide evenly over my properties - So if I spend $100 and have 10 properties I put $10 per property on the schedule E

Business mileage gets deducted as an itemized deduction

If you are not going to use an accountant, I suggest this book.  It is easy to understand and will cover all your questions

https://smile.amazon.com/Every-Landlords-Tax-Deduc...