Expense Categories

Domara uses expense categories that align with Schedule E of IRS Form 1040. This makes tax reporting straightforward — your expenses are already organized the way the IRS expects them.

Categories

• Advertising — listing fees, ads for finding tenants
• Cleaning & maintenance — cleaning services, routine upkeep
• Insurance — property insurance premiums
• Legal & professional — attorney fees, accountant fees
• Management fees — if you pay a property manager
• Mortgage interest — interest portion of your mortgage payment
• Repairs — fixing things that are broken (plumbing, electrical, appliances)
• Supplies — materials and consumables for property maintenance
• Taxes — property taxes
• Utilities — gas, electric, water, trash (if landlord-paid)
• Other — anything that doesn't fit the above categories

Tips

• Repairs vs. improvements — the IRS treats these differently. Repairs (fixing what's broken) are deductible in the current year. Improvements (upgrades that add value) must be depreciated over time. When in doubt, consult your accountant.
• Consistent categorization — use the same category for the same type of expense every time
• Receipt scanning auto-categorizes — the AI suggests a category, but you can always change it