Are Hawaii GE and TAT taxes deductible in California

[Churro]

Hello,

I own a rental condo in Maui and pay GE and TAT taxes on my net income. Can I deduct those taxes from my California taxes?

[Anonymous_]

You can deduct those taxes from your federal income tax return but most likely not from your California income tax return (not directly, at least).

Hopefully, someone familiar with CA income tax law will respond.

[Churro]

Thank you for your response! Much appreciated! 

[TomD8 · Accepted solution]

Those are business taxes and can be deducted as rental expenses on your federal Schedule E.

Your rental income after expenses will be included in your California AGI, in effect crediting you for those taxes.

[Churro]

Thank you so much! That’s kind of what I figured but was hoping there was another deduction I wasn’t aware of. California taxes are so ridiculous any little bit helps! 😂