excess real estate taxes for a home business

[lotharlibby]

I have a home business. I put in my taxes and I am taking the standard deduction. My taxes for my home is over the $10,000 amount. Is the remaining amount the excess real estate taxes? For example, let's say my real estate taxes are $15,000. Would the $5,000 be the excess real estate taxes I should put down under Business Income and Expenses for my home office when it asks if I have any? This seems logical but it says it is less common, which makes me question to put it in.

[lotharlibby]

One other note, it seems like Turbo Tax should do this automatically. Since it is fairly obvious that the amount is in excess of the tax amount I am allowed on the standard deduction.

[PaulaM]

The IRS instructions for line 17 on Form 8829 state:

Line 17 Taxpayers claiming the standard deduction. If you are claiming the standard deduction, enter all the real estate taxes paid on the home in which you conducted business in column (b) of line 17.

So in your example, you would enter $15k for the excess real estate taxes.

Form 8829 Instructions

[lotharlibby]

I am not sure that makes sense. Because the first $10,000 is used on the standard deduction. The excess would be the $5000. Why would I be putting the total $15,000 there? I am assuming 'Excess' means more than I can deduct on my standard or itemized deductions. It does not say full taxes.  I don't understand why turbo tax does not automatically put that in. 

[MacFinancial]

You can include the excess $5000 in Schedule C Business Expenses.  There's a category for tax payments there.

[pk]

@lotharlibby ,  generally agreeing with my colleague @PaulaM , please  see this entries  for line 11 and line 17 of form 8829  :

2023 Instructions for Form 8829 (irs.gov)

I am assuming here that  you are  a sole-proprietor  business ( schedule-C ) and therefore  this  is helpful.

Is there more I can do for you ?

[lotharlibby]

That is what I am under. It has to do with assets, the home and the taxes. But since I don't use my whole home in my business it is a percentage. So I'm thinking I should not be writing that much off for taxes. 

[ThomasM125]

If you are taking the standard deduction, your excess property tax is your total property tax, as mentioned by @PaulaM .

You will see a reference to this in TurboTax:

If you itemized your deductions, the excess property taxes would be the taxes not allowable for itemized deductions because of limits applied on the deduction of state taxes. On Form 8829, your property taxes are entered on line 17 only if you take the standard deduction. If you itemize your deductions, the property taxes will show on line 11 for the amount allowable for itemized deductions and the excess on line 17. Either way, all of your property taxes are listed on Form 8829 to be allocated to your home office based on the size of the office to the size of the whole house.