How do you categorize property expenses?

[Andrew Schultz]

How do you break down your property expenses in to categories? For instance, Repairs, Bank Fees, Utilities, etc. I'm looking to improve the chart of accounts that I use to give the property owners I manage for a better break down on their monthly reporting.

[David Krulac]

@Andrew Schultz

The way that I do it is to use the categories that are on the IRS form Schedule E, which is for rentals. If I recall there are 16 categories, like advertising, auto, interest, taxes, repairs, supplies, etc. There is even a couple of blank lines for some thing else. so by breaking down expenses as the IRS does, it makes it easy to fill out your taxes at the end of the year.