Contrary to what you may hear, mortgage interest, property taxes and insurance are deductible up to a point. I don't know if that magic number is $1M or $700,000 yet, as I can't find the clarity I'm looking for on those two numbers in the bill yet. Feel free to join me and read the bill at <a rel="nofollow" target="_blank" href="http://apps.washingtonpost.com/g/documents/business/read-the-full-gop-tax-bill/2678/">http://apps.washingtonpost.com/g/documents/business/read-the-full-gop-tax-bill/2678/</a>
@Carl Mortgage interest for mortgages before December 15th2017 still qualify for mortgages up to $1,000,000. Mortgages after December 14th, 2017 qualify for amounts up to $750,000.
The COMBINED limit for deduction of taxes (property tax and State/Local income taxes) is up to $10,000.
***Those limits do *NOT* affect rental or business properties.***
Thanks TGBill. I'll go back and re-read all that (if I can find it again). This bill is long and it's like they take four pages to define each individual word in the one paragraph that actually means something to the likes of you and I.
It starts on page 90 of that PDF in your link (Page 88 of the actual document).
Thanks for that. I was reading the original website page and having a hard time navigating it. Just found the PDF link and have downloaded it now. So much easier to navigate and read now!
When I go to enter the Deductible Rental Property Expenses for 2018 on the new release, the header show the 2017 expenses in a column headed 2016, and ask you to input 2017. . .but, they are really looking for 2018. Turbotax just needs to correct their error and update the headers. Too bad they don't have an easy way to report their simple mistakes on their website.
This is a known problem and will be corrected in a future release. Only the header year columns are incorrect, the tax data is showing for tax year 2017 and 2018.
Property taxes for a rental property are not a deduction. They are an expense reported on Schedule E. There is no change to what is entered as an expense on Schedule E for tax year 2018.
I agree, nothing has changed in regards to rental property expenses. If it is a for-profit rental to an unrelated party, the usual expense deductions apply (up to the At Risk limits and Passive Loss limits).
What about delinquent property taxes for investment property that were paid in 2017? Can they also be included under expense?