On my Wisconsin State taxes should I enter the full property tax paid or half? The property is a duplex, I live in half and rent out the other half.

[rental01234]

On my federal taxes I entered half the property tax in the personal section and half in the business section for the rental property. On the rental property I chose to enter only the rental portion of expenses instead of having TurboTax (TT) split between rental and non rental portion. So I entered only half of the total property tax in the personal section and the other half in the business/rental section. When doing the Wisconsin state taxes TT brought in the number entered for personal property taxes. Since I split it it's only half of the actual taxes on the property. Can I report the full property tax on the Wisconsin taxes?

[PhyllisG · Accepted solution]

The State of Wisconsin Department of Revenue states:

"No. You may use only the portion of the property taxes that is allocable to the portion of the duplex that is your principal residence. For example, if both halves of the duplex are of equal size, you may use one-half of the property taxes paid on the duplex during the year for the [property] credit."

This statement aligns with claiming a property tax deduction for a duplex that is both personal and rental property.  Generally, because the property tax covers two properties each property is entitled to deduct half of the tax.

However, any other expenses (e.g., advertising, management fees, repairs) related to the rented duplex can be written off in their entirety on the Schedule E.