Deductions & credits

Hi LenaH

 

The issue is that if the total property tax is $25000 and you are using form 8829 for 2 businesses that use different part of the house which use different areas in the house, you will need to enter $25000 in each form 8829 as the percentage needs to be taken from full property tax.

 

But as you mentioned, that Turbo Tax just blindly add the two property tax entry and puts that amount for Schedule A.  It also apply SALT limit to the sum of these entries because it uses that in Sch A. So, in this case TT calculates property tax as 50,000 instead of $25,000 and gives error for form 8829 and puts (auto fill) $50000 as property tax in Schedule A.   Both of these are wrong.  As each form 8829 is used for different business with different area, TT should not be adding those.  It seems that this error is introduced this year.  It was not adding these entries last year and not putting the sum of property taxes in form 8829 in Sch A.

 

Hope someone looks at it and fixes it.  Splitting the property tax between the 8829 forms is not right and will not give the right deduction for  home office.

 

@marc1974