We moved, but neither house is over 10k in property taxes. Combined we are 11k+. Do we have excess real estate taxes?

[irrogical]

We moved in 2018, and paid a combined 11k in property tax.  We also have a home office.  Since we are over the 10k limit, I imagine we have excess property taxes, but I don't understand how to enter it since neither house is over the 10k limit.  Can/ How do I combine the taxes on our homes (both primary residences with a home office) to claim excess real estate tax?

[Vanessa · Accepted solution]

No, you will enter the full amount.  This will be listed on your Schedule A.  You will see the full amount on line 5b, but the on line 5e it will say enter the smaller amount which if you paid $11,000, will be $10,000.  Then on line 7, the line that is included in the itemized deductions final number you will see $10,000.

https://www.irs.gov/pub/irs-prior/f1040sa--2018.pdf

[irrogical]

Line 5b of schedule A?

[irrogical]

Oh, I see the link is for schedule A......  My question was more about getting the Home Office aligned with the taxes in each home.  I am trying to do actual expense now, maybe that will clear things up

[Vanessa]

The home office deduction is not subject to the $10,000 cap.  Generally, if you entered everything, TurboTax will bring over the taxes and mortgage interest then deduct that from the amount included in itemized deductions if you are itemizing.

Are you a sole proprietorship?

[irrogical]

When I went through a 2nd time and picked 'Actual Expenses' for both Home Offices it made more sense.  Thanks for your help!