West Virginia state taxes

[Crimsonsattic]

I own a few rental properties and of corse I pay property taxes on them. When filing West Virginia state taxes can you claim them as well as the property taxes paid on the home you live in? Or only on the home you live in? Thank you. 

[MaryK4]

Can you clarify if this is for the Homestead Excess Property Tax Credit (HEPTC)?  To qualify, your property taxes paid in 2022 must have exceeded 4% of your income in 2022. The maximum credit cannot exceed $1,000.  This would only apply to your main residence.

[Crimsonsattic]

Just the taxes on the home I live in doesn’t exceed the 4%. With the rentals and my homes property taxes combined it does exceed the 4%. But, from what I am understanding you can only claim your residence you live in for that correct?  Is there any way to write off the rental property taxes on the state tax return? Thank you

[HelenC12 · Accepted solution]

Yes, one of the qualifications for the Homestead exemption is that it must be an owner-occupied residence. 

No if by "writing off" you mean there is a line to enter your rental property taxes on your West Virginia tax return. That would be "double dipping". See my explanation below.

Yes, you "write off" your property taxes, in a not so straight forward way, on your West Virginia tax return when you complete your federal income tax Form 1040, Schedule E. 

1. On Schedule E, you deduct the rental property taxes from your rental income. 
2. The Schedule E then calculates the income or loss on the rental. 
3. That income or loss gets carried over to Schedule 1 (Form 1040) line 5.
4. The Schedule 1 Line 10 amount gets carried over to Form 1040, line 8. 
5. The Form 1040 Adjusted Gross Income gets carried over to West Virginia IT-140 line 1.

The net result is, you are not getting taxed, at the federal level or the state level, on all of your rental income because the rental property taxes were deducted from that income.