topic Where can i claim Hawaii GE Taxes that I paid for all my rental properties? in Investors & landlords

Where can i claim Hawaii GE Taxes that I paid for all my rental properties?

Anonymous — Tue, 14 Apr 2020 22:29:42 GMT

Re: Where can i claim Hawaii GE Taxes that I paid for all my rental properties?

MaryK4 — Tue, 14 Apr 2020 22:44:33 GMT

You can add these in the FEDERAL section under Taxes and Estimates paid, there is an option where you can enter Miscellaneous taxes paid.

Re: Where can i claim Hawaii GE Taxes that I paid for all my rental properties?

Carl — Tue, 14 Apr 2020 23:39:39 GMT

You can add these in the FEDERAL section under Taxes and Estimates paid, there is an option where you can enter Miscellaneous taxes paid.

@Anonymous and @MaryK4

Actually, for the state of Hawaii GET tax, that's wrong. the GET tax (General Excise Tax) is imposed on all gross business income. It is not imposed on personal income. Claiming GET on the SCH A will not help you at all if your total SCH A deductions do not exceed your standard deduction.

So for the GET tax the correct place to report it for your rental property, is on line 16 of the SCH E. To do that in Turbotax, work through the rental expenses section and you will enter the GET you paid for each individual property you own, in the "Other Taxes" box. It's directly below the box for "Real Estate Taxes".

Re: Where can i claim Hawaii GE Taxes that I paid for all my rental properties?

Carl — Thu, 09 Jul 2020 02:41:37 GMT

Thanks for that tidbit of information. Good to know. I myself left HI 20 years ago next month. A lot has changed on the tax front since then. While I do try to keep up, it's inevitable that some things slip through the cracks.

Re: Where can i claim the Hawaii GE Taxes that I paid for my rental property? I want to make sure all of it is included as an expense, not he percentage of the property since it is an ohana unit (ADU) on my property.

BrookesBusiness — Wed, 08 Mar 2023 05:51:59 GMT

I want to make sure all of it is included as an expense, not he percentage of the property since it is an ohana unit (ADU) on my property.

Someone in an earlier chat responded to a similar question by saying "other taxes" under "real estate taxes" on the Schedule E, but I tried that and because shared expenses between the main house and the ADU are split so 33 percent is considered a cost of operating the rental, only 33 percent of the GE tax was accounted for when it should be all 100 percent.

Re: Where can i claim Hawaii GE Taxes that I paid for all my rental properties?

BrookesBusiness — Wed, 08 Mar 2023 05:53:55 GMT

This only works if your rental property is NOT at your primary residence. For those with an ADU, this doesn't work due to the percentage calculated for many of the shared property costs. I'm going to put it under "other expenses".

Re: Where can i claim Hawaii GE Taxes that I paid for all my rental properties?

HopeS — Wed, 08 Mar 2023 14:42:34 GMT

Yes, if the GE tax is directly related to ADU on your property you should allocate it 100% on Schedule E to the ADU.

Other costs such as property taxes, utilities, hazard insurance, and other expenses that are shared between the ADU and your personal residence on the same piece of property, you can proportionately allocate them to the rental based on the square footage of the rental and your main home.

@BrookesBusiness