Rental Property Profit and Loss Template: Income, Expenses, and NOI Tracking (2026)
Rental property P&L with NOI calculation, cash flow analysis, Schedule E alignment, and key investor metrics. Pre-filled with a single-family rental example: $2,200/month rent, $320K purchase price.
Annual Rental Property P&L
3-bedroom single-family home. Purchase price $320,000, 25% down ($80K), $240K mortgage at 7% for 30 years.
| Line Item | Annual | % GRI | Schedule E |
|---|---|---|---|
| Rental Income | |||
| Gross Rental Income | $26,400 | 100% | Line 3 |
| Less: Vacancy (5%) | ($1,320) | -5.0% | - |
| Effective Gross Income | $25,080 | 95.0% | |
| Operating Expenses | |||
| Property Management (8%) | $2,006 | 7.6% | Lines 5-19 |
| Property Taxes | $4,200 | 15.9% | Lines 5-19 |
| Insurance | $1,800 | 6.8% | Lines 5-19 |
| Repairs and Maintenance | $2,400 | 9.1% | Lines 5-19 |
| Landscaping / Snow Removal | $900 | 3.4% | Lines 5-19 |
| Advertising / Leasing | $600 | 2.3% | Lines 5-19 |
| Accounting / Legal | $400 | 1.5% | Lines 5-19 |
| Capital Reserve (2%) | $502 | 1.9% | Lines 5-19 |
| Net Operating Income (NOI) | $12,272 | 46.5% | |
| Debt Service | |||
| Mortgage Interest | ($15,456) | -58.5% | Line 12 |
| Principal Repayment | ($3,708) | -14.0% | Not deductible |
| Cash Flow Before Tax | ($6,892) | -26.1% | |
| Tax Adjustments (Schedule E) | |||
| Depreciation (27.5 yr, $270K building) | ($9,818) | -37.2% | Line 18 |
| Schedule E Taxable Income/Loss | ($13,002) | 49.3% | Line 22/23 |
This property shows a negative Schedule E taxable income because depreciation ($9,818/year) is a non-cash deduction that reduces taxable income. In reality, the property generates $0 in pre-tax cash flow. This is the "paper loss" benefit of rental real estate - you can often offset other passive income or (if you qualify as a real estate professional) ordinary income with rental property depreciation losses.
Schedule E Line Mapping
Not tax advice. Consult a CPA for guidance on your specific rental situation.
| Expense Category | Sched E Line | Notes |
|---|---|---|
| Advertising | Line 5 | Listing fees, online rental ads, for-rent signs |
| Auto and Travel | Line 6 | Trips to property for repairs, inspections - keep mileage log |
| Cleaning and Maintenance | Line 7 | Regular cleaning, landscaping, routine maintenance |
| Commissions | Line 8 | Property management fees |
| Insurance | Line 9 | Landlord/dwelling policy; not personal homeowner's |
| Legal and Professional | Line 10 | Lease preparation, eviction attorney, CPA fees |
| Management Fees | Line 11 | Property management company fees (8-12% of rent) |
| Mortgage Interest | Line 12 | Interest portion only, from Form 1098 from your lender |
| Other Interest | Line 13 | HELOC or other loan interest for the property |
| Repairs | Line 14 | Routine repairs - NOT improvements/capital improvements |
| Supplies | Line 15 | Small items for the property under $2,500 |
| Taxes (property) | Line 16 | Property taxes paid during the year |
| Utilities | Line 17 | Only utilities paid by the landlord, not tenant |
| Depreciation | Line 18 | From Form 4562 - building value (not land) divided by 27.5 years |
Depreciation Calculation
Less: Land Value (typically 15-25%): -$50,000
Depreciable Building Basis: $270,000
Recovery Period (Residential): 27.5 years
Annual Depreciation: $270,000 / 27.5 = $9,818/year
Depreciation is a non-cash deduction that reduces your taxable rental income without reducing your actual cash flow. Over time, however, depreciation reduces your property's tax basis. When you sell, you owe depreciation recapture tax (currently 25%) on all depreciation previously taken. This is why many investors hold rental properties long-term or use 1031 exchanges.