Why cant I use a rental property real estate tax on my personel income tax in lieu of claiming it as an expense on rental income?

[Melaine · Accepted solution]

By claiming on rental income, it reduces your rental income by that amount, it will do the same if placed on your personal income, by the same value.  Regardless of where they are placed, personal or rental income, it will reduce your taxable income by the same amount.  However, by putting the expense with rental income you are able to see how profitable, or not, your rental property.  All income and expenses associated with each property should be shown as such on Schedule E (rental property form).  To learn more, please read Real Estate Tax and Rental Property