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Walter585
Level 1

Rental Itemized deductions and Personal Standard Deduction

So I have a few rentals and I itemize everything on those with the total that exceeded 10k. Now this is strictly rentals and not personal I do everything under one umbrella so there is no LLC or anything like that. 

I just use the Rental Turbo Tax version of the product.

On paper I have surpassed the itemized deduction but that is all with the rentals not personal.

 

Can I also take standard deduction even though the rentals exceeded the itemized 10k?

 

What I am trying to do is take the standard deduction or try to deduct my personal home taxes. (not sure if this is ok or not and hence why I am here ) Right now it says that I have reached the limit but that includes my rentals. I have not input any of my personal taxes in.

 

While filling out the turbo tax it said "You've maxed out the federal $10,000 deduction for itemized state and local taxes." 

 

 

1 Best answer

Accepted Solutions
Critter-3
Level 15

Rental Itemized deductions and Personal Standard Deduction

You are mixing up apples and oranges ... first  the rentals are reported on the Sch E and you may have an overall loss on that form.   

 

THEN  you are allowed the larger of the Sch A (itemized deductions)  or the standard deduction.   

 

The expenses for the rentals on the Sch E  do not   ALSO go on the Sch A.  These are totally separate situations on the tax return.   

View solution in original post

3 Replies
Critter-3
Level 15

Rental Itemized deductions and Personal Standard Deduction

You are mixing up apples and oranges ... first  the rentals are reported on the Sch E and you may have an overall loss on that form.   

 

THEN  you are allowed the larger of the Sch A (itemized deductions)  or the standard deduction.   

 

The expenses for the rentals on the Sch E  do not   ALSO go on the Sch A.  These are totally separate situations on the tax return.   

View solution in original post

Walter585
Level 1

Rental Itemized deductions and Personal Standard Deduction

 I was all screwed up. I always do standard deduction and in turbo tax its starts you off with that before you hit numbers higher then the standard then it will switch you over.  I tired to see how my taxes would look if I itemized my personal which led me down a rabbit hole as I fully didn't understand the SALT deductions. 

Again thanks for the help!

Carl
Level 15

Rental Itemized deductions and Personal Standard Deduction

Your rental expenses are business expenses, and have no impact at all on your "personal" SCH A itemized deductions. There are no limits to your deductible rental expenses on the SCH E, since rental property "is" business property. You could have $50,000 of deductions on the SCH E, and it doesn't affect any of your SCH A deductions or SCH A limits at all.

 

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