topic My rental property state tax is making me take standard deduction - why? in Investors & landlords

My rental property state tax is making me take standard deduction - why?

evans62 — Sat, 08 Feb 2020 22:40:20 GMT

I entered the state income tax for my rental properties in TT.

Then when I enter the state tax on my own house, it tells me "you've maxed out the federal $10,000 for itemized state and local taxes." And that my home's property tax doesn't count because my best tax break is the $24400 standard deduction.

Why is this happening? I thought the new $10,000 limitation on the state and local tax deduction does not apply to taxes you deduct on a business return. My deductions on Schedules C, E, and F should be safe.

Re: My rental property state tax is making me take standard deduction - why?

Carl — Sat, 08 Feb 2020 22:44:41 GMT

I assume we're talking about your federal return here. If so, then the only place you enter property taxes paid on your rental property is on the SCH E, and absolutely nowhere else on the return. This is of course, assuming the rental property was "in fact" classified as residential rental real estate for the entire 365 day tax year with absolutely no days of personal use.

It sounds to me like you're entering the property taxes paid on your rental, under the deductions & Credits tab in the "your home" section. Don't do that. Or did you convert the property from personal use to rental property in 2019?

Re: My rental property state tax is making me take standard deduction - why?

evans62 — Mon, 10 Feb 2020 01:02:05 GMT

Yes, I'm doing my federal return, haven't used rental property for personal use, it has always been a rental property, and I'm *not* entering the rental property taxes for my rentals in the "My Home" section.

I've realized my rental properties aren't the problem, I have reached the $10,000 limit because of other reasons.