Property tax and Utilities for Garden Nursery Business

[dvu]

Hello,

We run a Garden Nursery business out of our backyard.  The greenhouse is a separate structure on our primary residence.  My understanding is that I can deduct a portion of the property tax and utilities that used for the business.

Regarding property tax.  Let's say my total property tax for 2023 was $10,000.  if I use 1/5 of the land for Nursery etc, I'm assuming I can use $2000 as a business deduction.  But do I only enter in $8000 for the property tax paid when it comes to the section where i enter in property tax for our primary residence?

thx, duc

[AnnetteB6]

Yes, you would only enter the remaining $8000 in property taxes for your Schedule A deduction.  

You can only deduct the total amount one time in your return, even though it may be split up into different places in the return.  Doing it any other way would be double-dipping and deducting too much.  

[dvu]

Is there a specific section i need to enter the property tax on the business section?

thx

[KrisD15]

You may enter the property tax paid on that portion under

Business Income and Expenses

Taxes and Licenses 

There is not always a certain mandatory spot to list expenses, but do try to list things the same place year after year. 

[dvu]

Regarding utilities.  I assume I list in the same place and can take a percentage of my electricity bill as to come up with the amount I used to heat the greenhouse during the winter.  

duc

[Vanessa A]

That is correct.  You can take a prorated amount of your electrice and other utility bills that are related to your greenhouse as a business expense. You would list them in the business expense section under Utlities.