Manual Figures on the Rental Property Worksheet
Three line items on Schedule E (US) and two on T776 (Canada) are never auto-routable from email because their source documents are year-end statements and forms — not receipts. ExpenseBot generates the worksheet with empty cells in these rows so you or your accountant can type the figures directly into the sheet.
USA — Schedule E (Form 1040)
| Line | What it is | Source document | Where to find the number |
|---|---|---|---|
| Line 12 — Mortgage interest paid to banks | Annual interest paid on the property's mortgage | Form 1098 from your lender | Box 1 (Mortgage interest received from payer) |
| Line 13 — Other interest | Non-mortgage interest paid (HELOC, second mortgage with a private lender, etc.) | Lender statement or 1098 from the secondary lender | Year-total from the statement |
| Line 18 — Depreciation | Annual depreciation deduction for the building (residential = 27.5-year straight-line) | Form 4562 (calculated by you or your accountant) | Line 22 of Form 4562 for this property |
The generated worksheet has a row for each line with the label pre-filled. The Cost column on those rows is left blank — type the figure from your 1098 / Form 4562 directly into the cell. The worksheet's Total Expenses (Line 20) and Net Income/Loss (Line 26) formulas pick up your manual entry automatically.
Canada — T776 (Statement of Real Estate Rentals)
| Line | What it is | Source document |
|---|---|---|
| Line 8710 — Interest | Mortgage interest + any other interest paid on borrowings related to the rental | Lender's annual interest statement |
| CCA — Area A | Capital Cost Allowance (Canadian equivalent of depreciation) | Calculated by you or your accountant — declining-balance class %, varies by building type |
CCA in Canada uses declining-balance (not straight-line) and the rate depends on the building's CCA class. Most accountants calculate CCA at year-end after deciding whether to claim CCA at all (claiming CCA can disqualify the principal residence exemption if you ever convert the property back to personal use). The worksheet leaves the row blank for that reason.
Why these aren't auto-extracted from email
Mortgage interest and depreciation forms aren't receipts that arrive in your Gmail throughout the year:
- 1098 is a year-end IRS form mailed (or emailed as a PDF) by your lender in January or February
- Form 4562 is calculated, not received — and depends on the property's land-vs-building cost basis, which is one-time data your accountant sets up
- Canadian lender interest statements are similarly year-end (T5 / annual mortgage statement)
ExpenseBot's auto-routing handles the recurring expense categories — repairs, insurance, utilities, advertising, management fees — that flow through email receipts. The annual figures need to come from you.
What if I forwarded my 1098 to receipts@expensebot.ai?
The PDF will be processed and land on your Expenses tab as a single line — but it won't be routed into the Schedule E mortgage interest line automatically. Use the figure from Box 1 of the form and enter it into the worksheet's Line 12 row directly. (The receipt copy on your Expenses tab is fine to keep as documentation; it just doesn't flow into the rental report.)
Carrying figures forward year over year
ExpenseBot generates a fresh worksheet each year — values you typed into last year's Schedule E worksheet don't auto-fill this year's. Mortgage interest changes each year as your principal pays down; depreciation usually stays the same year over year for years 2 through 27 of straight-line. Most landlords keep their Form 4562 calculations in a separate file (or with their accountant) and copy the depreciation figure into ExpenseBot's worksheet each year.
If cross-year persistence becomes a common ask, we'll add a property-scoped tax-year override store. Email support@expensebot.ai if you want this.
Multi-property workflow
The Schedule E report includes one section per property. Each section has its own Line 12 / 13 / 18 (USA) or Line 8710 + CCA (Canada) row to type into. The portfolio-wide Total at the bottom of the sheet picks up all your manual entries automatically.