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Level 1
January 31, 2020
Question

I pay more than $10,000 in property tax on my primary residence. I want to buy an investment property to rent out. Would the property tax on that rental be deductible?

  • January 31, 2020
  • 2 replies
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2 replies

DoninGA
Level 15
Level 15
January 31, 2020

Would the property tax on that rental be deductible?

The property tax on the rental property would be entered as an expense on Schedule E.

Carl
Level 11
Level 11
January 31, 2020

Rental property is a form of business property, and the $10K SALT limit does not apply to business property. It only applies to your SCH A deductions. Property taxes for rental property are claimed on SCH E, so they have no impact on your SCH A limits.