LenaH
Employee Tax Expert

Deductions & credits

I agree with the tax theory mentioned, which is that the SALT cap shouldn't limit a Schedule C deduction. This occurs because TurboTax evaluates the combined form entries against the SALT limit. 

 

I've found that entering the full property tax amount on two separate Forms 8829 triggers an error on Line 11b that prevents the return from being e-filed. I am not sure of your exact tax situation, but if you have total property tax over the SALT limit (in my previous example, I just used 40,000 as an example), you can split the deduction as I explained and enter the 'excess' portion for each business in the box Excess real estate taxes.

 

@marc1974 

 

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