Are Income Taxes paid to another State deductible as an expense from Farm Land Cash Rent?

[Themushj]

We know property taxes, insurance and professional fees are deductible on Schedule E and are clearly presented in Turbo Tax Premier. This past year we paid income taxes on the cash rent made on a piece of land in another state from which we live. Are those out-of-state income taxes from the cash rent deductible on our federal return (IE. lower our tax liability on the cash rent we earned as do the property taxes, insurance and professional fees). If so, where in Turbo Tax Premier is the location to enter them? 

[Anonymous_]

Did you pay estimated state taxes? 

Regardless, state taxes paid would be deductible on Schedule A (if you itemize) subject to limitations.

See https://www.irs.gov/instructions/i1040sca#en_US_2022_publink53061xd0e667

[Hal_Al · Accepted solution]

Q. Are Income Taxes paid to another State deductible as an expense from Farm Land Cash Rent?

A. No. Do not enter that on Schedule E, as a rental expense (don't enter it in the rental income and expenses section of TurboTax).

State income taxes paid are deductible as an itemized deduction, on Schedule A, if you itemize deductions.  

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Estimates & other taxes paid

   -Other Income taxes

    On the next screen, scroll down to:

     -Other income taxes paid in 2022

      On the next screen:

       -balance due on your 2021 return paid in 2022

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