I am renting out a parking space which is a part of my primary home. I can allocate a relevant part of property taxes towards the parking space expenses on schedule E.
However, on my federal return this year it is more beneficial for me to allocate all those property taxes towards schedule A (I am itemizing and within SALT limits).
But on NJ return it is more beneficial for me to allocate relevant part of my property taxes towards the parking space expenses.
Is it legal to do different allocation of property taxes on Federal and NJ return?
If it is legal, then how to do it in TurboTax online? It appears TurboTax online simply copies stuff from Federal return and does not allow to adjust neither property tax, no inputs from schedule E unless I am missing something.
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You are missing nothing. New Jersey follows the federal rules on rental expenses. So it needs to match your federal return. So you have to pick one or the other and go with it.
You are missing nothing. New Jersey follows the federal rules on rental expenses. So it needs to match your federal return. So you have to pick one or the other and go with it.
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