### Author Topic: Calculating the cost of goods sold for residential rental  (Read 867 times)

#### electriceagle

• Bristles
• Posts: 495
##### Calculating the cost of goods sold for residential rental
« on: April 01, 2020, 11:40:25 PM »
How does one calculate the "cost of goods sold" for residential rental? Is it the cost of operating the property? Does it include mortgage interest and property tax?

I don't understand which items are included. For instance:
- Cleaning
- Legal fees
- Mortgage interest
- Repairs
- Property taxes
- Insurance
- Depreciation

Or is it just "zero" because there is no physical item being sold?

Perhaps someone who understands this better than I do can help.

#### MoseyingAlong

• Stubble
• Posts: 171
##### Re: Calculating the cost of goods sold for residential rental
« Reply #1 on: April 02, 2020, 12:10:28 AM »
Hi,
I highly recommend getting a blank Schedule E and looking it over. Schedule E is the form used for residential rental property. You'll see where most of those expenses are reported.

Cost of goods sold is more a Schedule C business item.

HTH

#### electriceagle

• Bristles
• Posts: 495
##### Re: Calculating the cost of goods sold for residential rental
« Reply #2 on: April 02, 2020, 02:22:07 AM »
Hi,
I highly recommend getting a blank Schedule E and looking it over. Schedule E is the form used for residential rental property. You'll see where most of those expenses are reported.

Cost of goods sold is more a Schedule C business item.

HTH

Thanks, but I'm asking for a non-tax reason. I know that people think of cost of goods sold more in schedule C than in schedule E. That's why I'm having trouble figuring it out.

So, I still have the same question.

Does anyone know how to calculate the "cost of goods sold" for residential rental?

#### SeattleCPA

• Handlebar Stache
• Posts: 1607
• Age: 61
• Location: Redmond, WA
##### Re: Calculating the cost of goods sold for residential rental
« Reply #3 on: April 02, 2020, 02:49:08 PM »
Your cost of goods sold (COGS) equals zero.

COGS are the cost of the stuff a store or manufacturer sells. E.g., Starbucks "COGS" are coffee and cups, etc.

#### powskier

• Bristles
• Posts: 382
##### Re: Calculating the cost of goods sold for residential rental
« Reply #4 on: April 06, 2020, 09:56:29 PM »
Are you filling out the SBA disaster loan application?