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Real estate taxes under business income section

Help - I have a small home business  and at the section where Turbo Tax wants me to enter real estate taxes, but there appears to be a contradiction of statement of whether I should or shouldn't enter my property taxes here or later. like - If you paid real estate taxes but are not itemizing deductions, do not enter you real estate taxes here. Enter them as excess real estate taxes later. . . but then under that it also says - If I paid real estate (property) taxes on the entire home, enter this amount here and later go to the deductions & Credits area and review the property tax information??????????

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3 Replies
ColeenD3
Expert Alumni

Real estate taxes under business income section

Please see this answer from AndreaG:

 

I went through this process in Turbo Tax, the online self employed version; I am not sure which version you are using. There are multiple ways to enter the real estate taxes in to the business use of home section. I entered in my square footage and entered in the entire expense. I also went to the deductions and credits section for itemized deductions and entered in the entire expense under the real estate tax category.

 

When I looked at the Form 1040, it calculated the Schedule A deduction correctly and there wasnt any doubling up. You might want to retrace your steps in the business use of home section as well as the deductions and credits section to see if you can determine what happened.

Real estate taxes under business income section

Hello, I enter all my square footage and expenses like you mentioned. I did not itemize deduction, taking the standard deduction. Here is a snapshot of where I am and the question I am perplexed by, because I seem to be able to answer both ways????

 

Screen Shot 2020-03-09 at 12.08.01 PM.png

ColeenD3
Expert Alumni

Real estate taxes under business income section

I don't really get what it is saying either. However, I do understand that you can enter the entire amount and the program will calculate the deductible percentage.

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