from IRS Schedule E instructions
General Instructions for
Lines 5 Through 21
Enter your rental and royalty expenses
for each property in the appropriate column. You can deduct all ordinary and
necessary expenses, such as taxes, interest, repairs, insurance, management fees,
agents' commissions, and depreciation.
Do not deduct the value of your own
labor or amounts paid for capital investments or capital improvements.
Enter your total expenses for mortgage interest (line 12), depreciation expenses and depletion (line 18), and total expenses (line 20) on lines 23c through 23e, respectively, even if you have only one property.
these admin expenses to earn royalty income are deductible. on schedule E. (pub 529 reference is to items that would have been deductible on Schedule A - itemized deductions)
