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Allocation of expenses between personal and business for a mixed use property
In 2017 TT allocated interest and property tax deductions for my business versus personal use for a mixed use property (vacation and rental) using the Tax Court method, while all other expenses were allocated using the IRS method. In 2018 all deductions are allocated using the IRS method. This really reduces my Schedule A deductions. Is this correct?
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Allocation of expenses between personal and business for a mixed use property
Since you are using the Desktop product, you can go to Forms on the upper right, then click on the Schedule E worksheet for this property.
Scroll down to line R to check that you want to use the Tax Court Method.
Either method is correct. I believe we changed the default here because so few people are able to itemize this year given the new higher standard deductions. Also, given the new limits on State tax and interest deductions on Schedule A, most people are looking for ways to shift these deductions to other forms.
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Allocation of expenses between personal and business for a mixed use property
Since you are using the Desktop product, you can go to Forms on the upper right, then click on the Schedule E worksheet for this property.
Scroll down to line R to check that you want to use the Tax Court Method.
Either method is correct. I believe we changed the default here because so few people are able to itemize this year given the new higher standard deductions. Also, given the new limits on State tax and interest deductions on Schedule A, most people are looking for ways to shift these deductions to other forms.