The way I see this issue, if it were to be argued in Tax Court:
We agree if Married Filing Separate, then both Itemize or both take the Standard Deduction
TRUE
"If you and your spouse file separate returns and one of you itemizes deductions, the other spouse must also itemize, because in this case, the standard deduction amount is zero for the non-itemizing spouse."
We agree that one taxpayer may claim more deductions than the other, TRUE
"When paid from separate funds, expenses are deductible only by the spouse who pays them"
Here is where we differ, there is nothing that says one Taxpayer can claim more than 5,000 property tax paid when filing MFS, it only says one Taxpayer can only claim what they paid which might be more than the other.
If 11,000 was paid and only one spouse paid it, that spouse could claim 5,000 and the rest is lost.
In fact, if a friend were to pay your property tax NO ONE could claim that as a deduction. The tax must be on YOUR home and paid by you.
The HR link talks about mortgage interest. That deduction amount is not limited, so has no bearing on this issue.
The issue is Property tax.
"The deduction for state and local taxes, including real estate taxes, is limited to $10,000 ($5,000 if married filing separately). See the Instructions for Schedule A"
So Yes, when filing Married Filing Separate, one spouse may claim more in property taxes paid if that spouse paid it from separate funds, but only up to 5,000.
IRS FAQ
IRS Pub 530
Schedule A
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