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Hawaii rental property - are GE, TAT, and OTAT deducible tax from federal return?

For TurboTax premier 2022,  Federal tax portion, under wages and income,  Rental income (schedule E).

 

My rental property is in Hawaii and we have been paying Hawaii's own  GE, TAT, and OTAT taxes throughout the year.  Can those amounts be entered under the Expenses -> Other Taxes field for the property? 

 

Thank you. 

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Accepted Solutions
DaveF1006
Expert Alumni

Hawaii rental property - are GE, TAT, and OTAT deducible tax from federal return?

Yes, it does state in the following IRS publication  that deductible real estate taxes are generally any state or local taxes on real property levied for the general public welfare. The charge must be uniform against all real property in the jurisdiction at a like rate.  These taxes would fall under these guidelines.

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3 Replies
DaveF1006
Expert Alumni

Hawaii rental property - are GE, TAT, and OTAT deducible tax from federal return?

Yes, it does state in the following IRS publication  that deductible real estate taxes are generally any state or local taxes on real property levied for the general public welfare. The charge must be uniform against all real property in the jurisdiction at a like rate.  These taxes would fall under these guidelines.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

Hawaii rental property - are GE, TAT, and OTAT deducible tax from federal return?

Thank you, if my property manager charges a sales tax on their management fees, is the sales tax a deductible expense from the rental property  income? 

DaveF1006
Expert Alumni

Hawaii rental property - are GE, TAT, and OTAT deducible tax from federal return?

Yes, that expense is deductible as well.

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