You don't itemize anything on SCH E. Never. All rental income and rental expenses are reported on SCH E. There's no such thing as "itemized deductions" on SCH E. All rental expenses are claimed/deducted on SCH E. Period.
Note that your SCH E will always show a loss, every single year. It is "extremely" rare for rental property to ever show a taxable profit on paper. In fact, when it comes to taxes rental property operates at a loss *on paper". Especially if there's a mortgage on the property. When you add together the deductible mortgage interest, property insurance, property taxes and the depreciation you are required to take by law, it will always exceed the rental income received for the year. Add to that your other allowed rental deductions for things like repairs and maintenance, and you're practically guaranteed those dedeuctions will exceed the rental income.
Since rental income is passive, your rental deductions can only be deducted from that income. Once your expenses get the taxable rental income to zero (and it will) any excess deductions are just carried over to the next year.
So with each passing year your rental deduction carry over amount is guaranteed to increase and grow. You can't actually "realize" the carry over amount until the tax year you sell the property. Only in that year can your excess deductions be deducted from other, ordinary income.
