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Level 1
posted Mar 24, 2024 8:52:51 AM

Hawaii Property tax deduction question in TTax

I own rental property in Hawaii as an out-of-state resident.  In calculating the net rental income on Schedule E  I include the property tax expense.   When going through step-by-step for the Hawaii return there is a separate question asking about property taxes paid in Hawaii.  Seems to me that I'v already deducted that in arriving at net income on Schedule E.   Should I also add the amount in answering that question?

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1 Best answer
Expert Alumni
Mar 27, 2024 7:12:16 AM

No, the property taxes should not be entered again. According to the Hawaii (HI) instructions the property taxes for itemized deductions would not include any taxes used for business/rental. HI allows a full itemized deduction for state and local taxes, not limited by the federal law.

 

HI Instructions 

Real Estate Taxes For tax years 2018 through 2025, foreign real property taxes cannot be deducted. 

Include taxes you paid on real estate you own that was not used for business.

1 Replies
Expert Alumni
Mar 27, 2024 7:12:16 AM

No, the property taxes should not be entered again. According to the Hawaii (HI) instructions the property taxes for itemized deductions would not include any taxes used for business/rental. HI allows a full itemized deduction for state and local taxes, not limited by the federal law.

 

HI Instructions 

Real Estate Taxes For tax years 2018 through 2025, foreign real property taxes cannot be deducted. 

Include taxes you paid on real estate you own that was not used for business.